Manitowoc Company, Inc. (The) (NYSE: MTW) and Terex Corporation (NYSE:TEX) are both industrial products companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Volatility & Risk

Manitowoc Company, Inc. (The) has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Terex Corporation has a beta of 1.87, indicating that its share price is 87% more volatile than the S&P 500.

Dividends

Terex Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Manitowoc Company, Inc. (The) does not pay a dividend. Terex Corporation pays out -50.8% of its earnings in the form of a dividend. Manitowoc Company, Inc. (The) has increased its dividend for 3 consecutive years.

Valuation & Earnings

This table compares Manitowoc Company, Inc. (The) and Terex Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Manitowoc Company, Inc. (The) $1.43 billion 0.91 -$3.00 million ($1.51) -6.11
Terex Corporation $4.22 billion 0.97 $152.10 million ($0.63) -72.73

Terex Corporation has higher revenue and earnings than Manitowoc Company, Inc. (The). Terex Corporation is trading at a lower price-to-earnings ratio than Manitowoc Company, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Manitowoc Company, Inc. (The) and Terex Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Manitowoc Company, Inc. (The) -14.63% -14.85% -5.70%
Terex Corporation -1.76% 4.98% 1.79%

Insider & Institutional Ownership

81.0% of Manitowoc Company, Inc. (The) shares are owned by institutional investors. Comparatively, 97.4% of Terex Corporation shares are owned by institutional investors. 2.8% of Manitowoc Company, Inc. (The) shares are owned by insiders. Comparatively, 2.5% of Terex Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Manitowoc Company, Inc. (The) and Terex Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Manitowoc Company, Inc. (The) 0 6 3 0 2.33
Terex Corporation 3 6 5 0 2.14

Manitowoc Company, Inc. (The) currently has a consensus target price of $7.38, suggesting a potential downside of 19.92%. Terex Corporation has a consensus target price of $37.75, suggesting a potential downside of 17.61%. Given Terex Corporation’s higher possible upside, analysts plainly believe Terex Corporation is more favorable than Manitowoc Company, Inc. (The).

Summary

Terex Corporation beats Manitowoc Company, Inc. (The) on 13 of the 16 factors compared between the two stocks.

Manitowoc Company, Inc. (The) Company Profile

The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.

Terex Corporation Company Profile

Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.

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