Titan International (NYSE:TWI) and Gencor Industries (NASDAQ:GENC) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.
Institutional & Insider Ownership
65.2% of Titan International shares are owned by institutional investors. Comparatively, 49.2% of Gencor Industries shares are owned by institutional investors. 17.8% of Titan International shares are owned by company insiders. Comparatively, 29.2% of Gencor Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Titan International has a beta of 2.47, indicating that its share price is 147% more volatile than the S&P 500. Comparatively, Gencor Industries has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.
Profitability
This table compares Titan International and Gencor Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Titan International | -5.51% | -27.12% | -4.91% |
Gencor Industries | 7.54% | 3.47% | 3.24% |
Valuation & Earnings
This table compares Titan International and Gencor Industries' gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Titan International | $1.45 billion | 0.41 | $-48,420,000.00 | ($0.76) | -12.66 |
Gencor Industries | $77.42 million | 2.31 | $5.53 million | N/A | N/A |
Gencor Industries has lower revenue, but higher earnings than Titan International.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Titan International and Gencor Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Titan International | 0 | 2 | 0 | 0 | 2.00 |
Gencor Industries | 0 | 0 | 0 | 0 | N/A |
Titan International currently has a consensus target price of $7.50, indicating a potential downside of 22.92%. Given Titan International's higher possible upside, analysts plainly believe Titan International is more favorable than Gencor Industries.
Summary
Gencor Industries beats Titan International on 7 of the 11 factors compared between the two stocks.