Fuel Tech (NASDAQ:FTEK) and Titan International (NYSE:TWI) are both small-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.
Insider and Institutional Ownership
24.3% of Fuel Tech shares are held by institutional investors. Comparatively, 77.8% of Titan International shares are held by institutional investors. 15.0% of Fuel Tech shares are held by company insiders. Comparatively, 17.8% of Titan International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Fuel Tech and Titan International's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Fuel Tech | $30.47 million | 0.70 | $-7,850,000.00 | ($0.24) | -3.59 |
| Titan International | $1.45 billion | 0.06 | $-48,420,000.00 | ($0.76) | -1.79 |
Fuel Tech has higher earnings, but lower revenue than Titan International. Fuel Tech is trading at a lower price-to-earnings ratio than Titan International, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Fuel Tech has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Titan International has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Fuel Tech and Titan International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Fuel Tech | 0 | 1 | 0 | 0 | 2.00 |
| Titan International | 0 | 0 | 0 | 0 | N/A |
Fuel Tech presently has a consensus price target of $1.75, suggesting a potential upside of 103.23%. Given Fuel Tech's higher probable upside, equities analysts clearly believe Fuel Tech is more favorable than Titan International.
Profitability
This table compares Fuel Tech and Titan International's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Fuel Tech | -36.62% | -22.77% | -17.90% |
| Titan International | -5.58% | -24.72% | -5.09% |
Summary
Titan International beats Fuel Tech on 6 of the 11 factors compared between the two stocks.
