Financial Review: Titan Machinery (NASDAQ:TITN) vs. Alta Equipment Group (NYSE:ALTG)

Alta Equipment Group (NYSE:ALTG – Get Free Report) and Titan Machinery (NASDAQ:TITN – Get Free Report) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility and Risk

Alta Equipment Group has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500. Comparatively, Titan Machinery has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for Alta Equipment Group and Titan Machinery, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Alta Equipment Group 1 2 2 0 2.20
Titan Machinery 1 0 1 0 2.00

Alta Equipment Group currently has a consensus price target of $9.83, suggesting a potential upside of 58.47%. Titan Machinery has a consensus price target of $29.00, suggesting a potential upside of 23.46%. Given Alta Equipment Group’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Alta Equipment Group is more favorable than Titan Machinery.

Institutional and Insider Ownership

73.6% of Alta Equipment Group shares are owned by institutional investors. Comparatively, 78.4% of Titan Machinery shares are owned by institutional investors. 20.5% of Alta Equipment Group shares are owned by insiders. Comparatively, 10.8% of Titan Machinery shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Alta Equipment Group and Titan Machinery”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Alta Equipment Group $1.84 billion 0.11 -$80.30 million ($2.57) -2.41
Titan Machinery $2.43 billion 0.23 -$54.17 million ($2.49) -9.43

Titan Machinery has higher revenue and earnings than Alta Equipment Group. Titan Machinery is trading at a lower price-to-earnings ratio than Alta Equipment Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Alta Equipment Group and Titan Machinery’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Alta Equipment Group -4.42% -3,253.61% -5.92%
Titan Machinery -2.46% -9.17% -3.20%

Summary

Titan Machinery beats Alta Equipment Group on 8 of the 14 factors compared between the two stocks.

About Alta Equipment Group

(Get Free Report)

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.

About Titan Machinery

(Get Free Report)

Titan Machinery Inc. owns and operates a network of full service agricultural and construction equipment stores in the United States, Europe, and Australia. It operates through four segments: Agriculture, Construction, Europe, and Australia. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, feed stock, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company’s construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, and road and highway construction machinery. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Idaho, Kansas, Missouri, Washington, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; Bulgaria, Germany, Romania, and Ukraine, Europe; and New South Wales, South Australia, and Victoria, Australia. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.

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