Financial Survey: E.I. du Pont de Nemours and (DD) and Trinity Industries (TRN)
E.I. du Pont de Nemours and (NYSE: DD) and Trinity Industries (NYSE:TRN) are both mid-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.
E.I. du Pont de Nemours and pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Trinity Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. E.I. du Pont de Nemours and pays out 59.4% of its earnings in the form of a dividend. Trinity Industries pays out 32.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Trinity Industries has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
71.2% of E.I. du Pont de Nemours and shares are owned by institutional investors. Comparatively, 81.0% of Trinity Industries shares are owned by institutional investors. 0.3% of E.I. du Pont de Nemours and shares are owned by company insiders. Comparatively, 2.0% of Trinity Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares E.I. du Pont de Nemours and and Trinity Industries’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|E.I. du Pont de Nemours and||$25.30 billion||2.80||$5.32 billion||$2.56||31.87|
|Trinity Industries||$4.00 billion||1.08||$858.50 million||$1.62||17.70|
E.I. du Pont de Nemours and has higher revenue and earnings than Trinity Industries. Trinity Industries is trading at a lower price-to-earnings ratio than E.I. du Pont de Nemours and, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for E.I. du Pont de Nemours and and Trinity Industries, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|E.I. du Pont de Nemours and||0||4||6||0||2.60|
E.I. du Pont de Nemours and currently has a consensus target price of $80.19, suggesting a potential downside of 1.71%. Trinity Industries has a consensus target price of $26.29, suggesting a potential downside of 8.32%. Given E.I. du Pont de Nemours and’s stronger consensus rating and higher possible upside, research analysts plainly believe E.I. du Pont de Nemours and is more favorable than Trinity Industries.
Risk & Volatility
E.I. du Pont de Nemours and has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500.
This table compares E.I. du Pont de Nemours and and Trinity Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|E.I. du Pont de Nemours and||8.86%||31.23%||8.10%|
E.I. du Pont de Nemours and beats Trinity Industries on 12 of the 17 factors compared between the two stocks.
About E.I. du Pont de Nemours and
E. I. du Pont de Nemours and Company is a science and technology-based company. It operates through six segments: Agriculture, Electronics & Communications (E&C), Industrial Biosciences, Nutrition & Health, Performance Materials and Protection Solutions. Its Agriculture segment includes products, such as corn hybrids and soybean varieties, herbicides, fungicides and insecticides. Its E&C segment includes products, such as printing and packaging materials, photopolymers and electronic materials. Its Industrial Biosciences segment includes products, such as enzymes, bio-based materials and process technologies. Its Nutrition & Health segment includes products, such as probiotics, cultures, emulsifiers, natural sweeteners and soy-based food ingredients. Its Performance Materials segment includes products, such as engineering polymers, packaging and industrial polymers, films and elastomers. Its Protection Solutions segment includes products, such as nonwovens, aramids and solid surfaces.
About Trinity Industries
Trinity Industries, Inc. is a diversified industrial company that owns businesses providing products and services to the energy, chemical, agriculture, transportation and construction sectors. The Company’s products and services include railcars and railcar parts; parts and steel components; the leasing, management and maintenance of railcars; highway products; construction aggregates; inland barges; structural wind towers; steel utility structures; storage and distribution containers, and trench shields and shoring products. The Company’s segments include the Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group, Railcar Leasing and Management Services Group, and All Other. Its All Other segment includes its captive insurance and transportation companies, and other peripheral businesses. It manufactures a line of railcars, including autorack cars, box cars, covered hopper cars, gondola cars, intermodal cars, open hopper cars and tank cars.
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