Comparing Terex (TEX) and Its Rivals

Terex (NYSE: TEX) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its competitors? We will compare Terex to similar businesses based on the strength of its profitability, analyst recommendations, valuation, earnings, risk, institutional ownership and dividends.

Analyst Recommendations

This is a summary of recent ratings and target prices for Terex and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex 2 7 5 0 2.21
Terex Competitors 171 878 962 17 2.41

Terex currently has a consensus price target of $40.33, indicating a potential downside of 11.82%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.39%. Given Terex’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Terex has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

96.8% of Terex shares are owned by institutional investors. Comparatively, 82.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.5% of Terex shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Terex and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Terex $4.44 billion -$176.10 million -53.19
Terex Competitors $6.06 billion $48.37 million 172.55

Terex’s competitors have higher revenue and earnings than Terex. Terex is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility & Risk

Terex has a beta of 1.89, meaning that its share price is 89% more volatile than the S&P 500. Comparatively, Terex’s competitors have a beta of 1.44, meaning that their average share price is 44% more volatile than the S&P 500.

Dividends

Terex pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Terex pays out -37.2% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. Terex has increased its dividend for 3 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Terex -2.62% 7.01% 2.60%
Terex Competitors 4.06% 13.41% 3.96%

Summary

Terex competitors beat Terex on 12 of the 15 factors compared.

Terex 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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