Titan Machinery (TITN) vs. Its Peers Critical Analysis

Titan Machinery (NASDAQ: TITN) is one of 25 public companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its rivals? We will compare Titan Machinery to related companies based on the strength of its profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Analyst Ratings

This is a summary of current recommendations for Titan Machinery and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Titan Machinery 0 1 2 0 2.67
Titan Machinery Competitors 142 702 1055 53 2.52

Titan Machinery currently has a consensus price target of $40.33, suggesting a potential upside of 15.44%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 13.50%. Given Titan Machinery’s stronger consensus rating and higher possible upside, equities analysts clearly believe Titan Machinery is more favorable than its rivals.

Profitability

This table compares Titan Machinery and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Titan Machinery 2.10% 11.04% 4.92%
Titan Machinery Competitors -16.79% 14.55% 1.93%

Volatility and Risk

Titan Machinery has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Titan Machinery’s rivals have a beta of 2.18, indicating that their average share price is 118% more volatile than the S&P 500.

Insider and Institutional Ownership

78.8% of Titan Machinery shares are held by institutional investors. Comparatively, 41.6% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 14.8% of Titan Machinery shares are held by insiders. Comparatively, 13.5% of shares of all “Retail stores, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Titan Machinery and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Titan Machinery $1.41 billion $19.36 million 24.26
Titan Machinery Competitors $8.29 billion $479.17 million -9.79

Titan Machinery’s rivals have higher revenue and earnings than Titan Machinery. Titan Machinery is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Titan Machinery beats its rivals on 8 of the 13 factors compared.

About Titan Machinery

Titan Machinery, Inc. engages in the management of agricultural and construction equipment stores. It operates through the following segments: Agriculture, Construction and International. The Agriculture segment sells services and rents machinery and related parts and attachments, for uses from large-scale farming to home and garden use in North America. The Construction segment focuses on machinery and related parts and attachments, for uses from heavy construction to light industrial machinery. The International segment deals with the customers in Eastern Europe. The company was founded by David Joseph Meyer in 1980 and is headquartered in West Fargo, ND.

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