Comparing Terex (TEX) and KION GRP AG/ADR (KIGRY)

Terex (NYSE:TEX) and KION GRP AG/ADR (OTCMKTS:KIGRY) are both mid-cap industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, institutional ownership, earnings, risk and valuation.

Profitability

This table compares Terex and KION GRP AG/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Terex 2.42% 18.86% 5.88%
KION GRP AG/ADR 5.48% 13.94% 3.57%

Dividends

Terex pays an annual dividend of $0.40 per share and has a dividend yield of 1.4%. KION GRP AG/ADR pays an annual dividend of $0.18 per share and has a dividend yield of 1.3%. Terex pays out 29.6% of its earnings in the form of a dividend. KION GRP AG/ADR pays out 17.1% 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. Terex has increased its dividend for 4 consecutive years. Terex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Terex has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500. Comparatively, KION GRP AG/ADR has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500.

Valuation & Earnings

This table compares Terex and KION GRP AG/ADR’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Terex $4.36 billion 0.48 $128.70 million $1.35 21.00
KION GRP AG/ADR $8.65 billion 0.68 $480.15 million $1.05 12.87

KION GRP AG/ADR has higher revenue and earnings than Terex. KION GRP AG/ADR is trading at a lower price-to-earnings ratio than Terex, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Terex and KION GRP AG/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex 3 8 6 0 2.18
KION GRP AG/ADR 0 1 1 0 2.50

Terex currently has a consensus target price of $40.09, indicating a potential upside of 41.41%. Given Terex’s higher possible upside, equities analysts clearly believe Terex is more favorable than KION GRP AG/ADR.

Summary

Terex beats KION GRP AG/ADR on 9 of the 15 factors compared between the two stocks.

Terex Company Profile

Terex Corporation manufactures and sells aerial work platforms, cranes, and materials processing machinery worldwide. The company operates through three segments: Aerial Work Platforms (AWP), Cranes, and Material Processing (MP). The AWP segment engages in the design, manufacture, service, and market of AWP equipment, telehandlers, and light towers, as well as related components and replacement parts under the Terex and Genie brands to construct and maintain industrial, commercial, and residential buildings and facilities, and for other commercial operations, as well as used in infrastructure projects. The Cranes segment designs, manufactures, services, refurbishes, and markets mobile telescopic and lattice boom crawler cranes, tower cranes, and utility equipment, as well as related components and replacement parts under the Terex and Demag brand names for the construction, repair, and maintenance of commercial buildings, manufacturing facilities, construction and maintenance of utility and telecommunication lines, tree trimming, and certain construction and foundation drilling applications, as well as for infrastructure projects. The MP segment engages in the design, manufacture, and marketing of crushers, washing systems, screens, apron feeders, material handlers, wood processing, biomass and recycling equipment, concrete mixer trucks and pavers, and related components and replacement parts under the Terex, Powerscreen, Fuchs, Evoquip, and CBI brands, as well as the Terex name in conjunction with certain historic brand names. This segment's products are used in construction, infrastructure, and recycling projects; various quarrying and mining, and material handling applications; and building roads and bridges, as well as landscaping and biomass production industries. The company also provides financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1925 and is based in Westport, Connecticut.

KION GRP AG/ADR Company Profile

KION GROUP AG provides supply chain solutions worldwide. The company operates through Industrial Trucks and Services, and Supply Chain Solutions segments. It develops, manufactures, and sells forklifts and warehouse trucks, such as counterbalance trucks with electric drive and IC engine, ride-on and hand-operated industrial trucks, towing vehicles, and automated trucks and autonomous trucks under the Linde, Fenwick, STILL, OM STILL, Baoli, and OM Voltas brands. The company also manufactures and sells spare parts; leases industrial trucks and related items; offers maintenance and repair services; and finances long-term leases. In addition, it provides integrated technology and software solutions, including conveyors, sorters, storage and retrieval systems, picking equipment, and palletisers under the Dematic brand. The company was formerly known as KION Holding 1 GmbH. KION GROUP AG was founded in 2006 and is headquartered in Frankfurt am Main, Germany.

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