Federal Signal (FSS) Competitors

Toro (NYSE:TTC) and Federal Signal (NYSE:FSS) are both mid-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, community ranking, valuation, dividends, analyst recommendations, media sentiment, earnings and profitability.

Is TTC or FSS a better dividend stock?

Toro pays an annual dividend of $1.52 per share and has a dividend yield of 2.1%. Federal Signal pays an annual dividend of $0.56 per share and has a dividend yield of 0.6%. Toro pays out 38.9% of its earnings in the form of a dividend. Federal Signal pays out 16.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Toro has raised its dividend for 21 consecutive years and Federal Signal has raised its dividend for 3 consecutive years. Toro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do insiders and institutionals have more ownership in TTC or FSS?

87.9% of Toro shares are held by institutional investors. Comparatively, 92.7% of Federal Signal shares are held by institutional investors. 0.4% of Toro shares are held by insiders. Comparatively, 3.3% of Federal Signal shares 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.

Does the MarketBeat Community believe in TTC or FSS?

Toro received 158 more outperform votes than Federal Signal when rated by MarketBeat users. Likewise, 68.97% of users gave Toro an outperform vote while only 58.24% of users gave Federal Signal an outperform vote.

Company	Underperform	Outperform
Toro	Outperform Votes 469 68.97%	Underperform Votes 211 31.03%
Federal Signal	Outperform Votes 311 58.24%	Underperform Votes 223 41.76%

Does the media favor TTC or FSS?

In the previous week, Federal Signal had 13 more articles in the media than Toro. MarketBeat recorded 30 mentions for Federal Signal and 17 mentions for Toro. Toro's average media sentiment score of 1.41 beat Federal Signal's score of 0.91 indicating that Toro is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Toro	13 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Federal Signal	11 Very Positive mention(s)	3 Positive mention(s)	12 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has higher valuation & earnings, TTC or FSS?

Toro has higher revenue and earnings than Federal Signal. Toro is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$4.58B	1.54	$418.90M	$3.91	18.08
Federal Signal	$1.86B	2.84	$157.40M	$3.51	24.65

Do analysts prefer TTC or FSS?

Toro currently has a consensus price target of $89.75, suggesting a potential upside of 26.93%. Federal Signal has a consensus price target of $95.00, suggesting a potential upside of 9.82%. Given Toro's stronger consensus rating and higher possible upside, research analysts plainly believe Toro is more favorable than Federal Signal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0 Sell rating(s)	2 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.80
Federal Signal	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more volatility and risk, TTC or FSS?

Toro has a beta of 0.72, meaning that its stock price is 28% less volatile than the S&P 500. Comparatively, Federal Signal has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Is TTC or FSS more profitable?

Federal Signal has a net margin of 11.57% compared to Toro's net margin of 9.14%. Toro's return on equity of 27.25% beat Federal Signal's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Toro	9.14%	27.25%	11.63%
Federal Signal	11.57%	18.46%	11.84%

Summary

Toro beats Federal Signal on 12 of the 21 factors compared between the two stocks.