Titan International (NYSE:TWI) and Westinghouse Air Brake Technologies (NYSE:WAB) are both industrial products companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitability, valuation and risk.
Earnings and Valuation
This table compares Titan International and Westinghouse Air Brake Technologies' top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Titan International | $1.45 billion | 0.43 | $-48,420,000.00 | ($0.76) | -13.34 |
Westinghouse Air Brake Technologies | $8.20 billion | 1.86 | $326.70 million | $4.17 | 19.33 |
Westinghouse Air Brake Technologies has higher revenue and earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than Westinghouse Air Brake Technologies, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Titan International has a beta of 2.47, indicating that its stock price is 147% more volatile than the S&P 500. Comparatively, Westinghouse Air Brake Technologies has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Titan International and Westinghouse Air Brake Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Titan International | 0 | 2 | 0 | 0 | 2.00 |
Westinghouse Air Brake Technologies | 0 | 2 | 5 | 0 | 2.71 |
Titan International currently has a consensus price target of $7.50, suggesting a potential downside of 26.04%. Westinghouse Air Brake Technologies has a consensus price target of $83.3333, suggesting a potential upside of 3.38%. Given Westinghouse Air Brake Technologies' stronger consensus rating and higher possible upside, analysts clearly believe Westinghouse Air Brake Technologies is more favorable than Titan International.
Profitability
This table compares Titan International and Westinghouse Air Brake Technologies' 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% |
Westinghouse Air Brake Technologies | 5.29% | 7.60% | 3.99% |
Institutional & Insider Ownership
65.2% of Titan International shares are owned by institutional investors. Comparatively, 88.1% of Westinghouse Air Brake Technologies shares are owned by institutional investors. 17.8% of Titan International shares are owned by insiders. Comparatively, 5.4% of Westinghouse Air Brake Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Westinghouse Air Brake Technologies beats Titan International on 12 of the 14 factors compared between the two stocks.