Toro (NYSE: TTC) and CNH Global (NYSE:CNH) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Institutional & Insider Ownership
75.2% of Toro shares are held by institutional investors. 5.7% of Toro shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Toro and CNH Global, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Toro currently has a consensus price target of $58.67, indicating a potential downside of 10.41%.
This table compares Toro and CNH Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Toro and CNH Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Toro||$2.39 billion||2.95||$230.99 million||$2.37||27.63|
Toro has higher revenue and earnings than CNH Global. CNH Global is trading at a lower price-to-earnings ratio than Toro, indicating that it is currently the more affordable of the two stocks.
Toro pays an annual dividend of $0.70 per share and has a dividend yield of 1.1%. CNH Global does not pay a dividend. Toro pays out 29.5% of its earnings in the form of a dividend. CNH Global has raised its dividend for 7 consecutive years.
Toro beats CNH Global on 8 of the 11 factors compared between the two stocks.
Toro Company Profile
The Toro Company (Toro) is engaged in the designing, manufacturing, and marketing of professional turf maintenance equipment and services, turf irrigation systems, landscaping equipment and lighting products, snow and ice management products, agricultural micro-irrigation systems, rental and specialty construction equipment, and residential yard and snow thrower products. The Company operates through three segments: Professional, Residential and Distribution. Under the Professional segment, Toro designs professional turf, landscape and lighting, rental and specialty construction, snow and ice management, and agricultural products. The Residential segment provides products, such as riding products, home solutions products and snow thrower products. It manufactures and markets various walk power mower models. The Distribution segment consists of Company-owned domestic distributorship. Its brands include Toro, Exmark, BOSS, Irritrol, Hayter, Pope, Unique Lighting Systems and Lawn-Boy.
CNH Global Company Profile
CNH Global N.V. (CNH) is a global, full-line company in both the agricultural and construction equipment industries. The Company organizes its operations into three business segments: agricultural equipment, construction equipment and financial services. The Company markets its products globally through its two brand families, Case and New Holland. Case IH (along with Steyr in Europe) and New Holland make up its agricultural brand family. Case and New Holland Construction (along with Kobelco in North America) make up its construction equipment brand family. During the year ended December 31, 2012, the Company was manufacturing its products in 37 facilities globally and distributing its products in approximately 170 countries through a network of approximately 11,500 dealers and distributors.
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