Tennant (NYSE: TNC) is one of 18 publicly-traded companies in the “Industrial Machinery” industry, but how does it compare to its competitors? We will compare Tennant to related companies based on the strength of its profitability, institutional ownership, risk, analyst recommendations, dividends, valuation and earnings.

Earnings & Valuation

This table compares Tennant and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tennant $873.73 million $91.45 million 61.34
Tennant Competitors $696.10 million $107.92 million 49.94

Tennant has higher revenue, but lower earnings than its competitors. Tennant is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Tennant pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Tennant pays out 75.0% of its earnings in the form of a dividend. As a group, “Industrial Machinery” companies pay a dividend yield of 1.0% and pay out 34.1% of their earnings in the form of a dividend. Tennant has increased its dividend for 45 consecutive years.

Profitability

This table compares Tennant and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tennant 2.32% 15.39% 7.19%
Tennant Competitors -24.03% 10.43% 4.25%

Risk and Volatility

Tennant has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, Tennant’s competitors have a beta of 1.52, meaning that their average share price is 52% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Tennant and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tennant 0 2 0 0 2.00
Tennant Competitors 44 291 291 8 2.41

Tennant currently has a consensus target price of $65.00, indicating a potential downside of 5.39%. As a group, “Industrial Machinery” companies have a potential upside of 8.28%. Given Tennant’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Tennant has less favorable growth aspects than its competitors.

Insider and Institutional Ownership

89.4% of Tennant shares are owned by institutional investors. Comparatively, 63.5% of shares of all “Industrial Machinery” companies are owned by institutional investors. 5.7% of Tennant shares are owned by insiders. Comparatively, 12.0% of shares of all “Industrial Machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Tennant competitors beat Tennant on 8 of the 15 factors compared.

About Tennant

Tennant Company is engaged in designing, manufacturing and marketing of cleaning solutions. The Company’s segments are Americas; Europe, Middle East, Africa, and Asia Pacific. The Company offers a range of products, including floor maintenance and outdoor cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair service, specialty surface coatings and asset management solutions. Its products are used in various types of environments, including retail establishments, distribution centers, factories and warehouses, public venues such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, parking lots and streets. The Company markets and sells its products under various brands: Tennant, Nobles, Green Machines, Alfa Uma Empresa Tennant, IRIS, Orbio IPC, IPC Foma, IPC Eagle, IPC Gansow, ICA, Vaclensa, Portotecnica, Sirio and Soteco, Ready System, Euromop, and Pulex.

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