Luxfer (NYSE:LXFR – Get Free Report) and Trinity Industries (NYSE:TRN – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.
Dividends
Luxfer pays an annual dividend of $0.52 per share and has a dividend yield of 3.0%. Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.8%. Luxfer pays out 173.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Trinity Industries pays out 29.9% of its earnings in the form of a dividend. Trinity Industries has raised its dividend for 16 consecutive years. Trinity Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
90.8% of Luxfer shares are held by institutional investors. Comparatively, 86.6% of Trinity Industries shares are held by institutional investors. 2.0% of Luxfer shares are held by company insiders. Comparatively, 2.1% of Trinity Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Luxfer | 2.20% | 12.22% | 7.23% |
| Trinity Industries | 16.62% | 18.51% | 2.56% |
Analyst Ratings
This is a breakdown of recent ratings and price targets for Luxfer and Trinity Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Luxfer | 0 | 2 | 0 | 1 | 2.67 |
| Trinity Industries | 0 | 3 | 0 | 0 | 2.00 |
Trinity Industries has a consensus price target of $35.00, indicating a potential upside of 35.69%. Given Trinity Industries’ higher probable upside, analysts clearly believe Trinity Industries is more favorable than Luxfer.
Earnings and Valuation
This table compares Luxfer and Trinity Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Luxfer | $384.60 million | 1.21 | $7.70 million | $0.30 | 57.52 |
| Trinity Industries | $2.16 billion | 0.95 | $253.10 million | $4.15 | 6.22 |
Trinity Industries has higher revenue and earnings than Luxfer. Trinity Industries is trading at a lower price-to-earnings ratio than Luxfer, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Luxfer has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500.
Summary
Trinity Industries beats Luxfer on 11 of the 17 factors compared between the two stocks.
About Luxfer
Luxfer Holdings PLC, together with its subsidiaries, designs, manufactures, and supplies high-performance materials, components, and high-pressure gas containment devices for defense and first response, healthcare, transportation, and general industrial applications. The company operates through three segments: Elektron, Gas Cylinders, and graphic Arts. The Elektron segment focuses on specialty materials based primarily on magnesium and zirconium. This segment also provides magnesium alloys for use in aerospace, healthcare, and oil and gas applications; magnesium powders for use in countermeasure flares, as well as heater meals; and zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, pharmaceuticals, and other performance products. The Gas Cylinders segment manufactures and markets specialized products using carbon composites and aluminum alloys, including pressurized cylinders for use in various applications comprising self-contained breathing apparatus (SCBA) for firefighters, containment of oxygen, and other medical gases for healthcare, alternative fuel vehicles, and general industrial applications. The Graphic Art segments provides magnesium photo-engraving plates, engraving metals, and etching chemicals. This segment also offers magnesium, copper, and zinc photo-engraving plates for graphic arts and luxury packaging; developer solutions; and solid wrought magnesium slab and sheet. Luxfer Holdings PLC has operations in the United States, the United Kingdom, Japan, Germany, Canada, rest of Europe, the Asia Pacific, and internationally. The company was founded in 1898 and is headquartered in Milwaukee, Wisconsin.
About Trinity Industries
Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.
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