Manitowoc (NYSE:MTW – Get Free Report) and Trinity Industries (NYSE:TRN – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.
Earnings and Valuation
This table compares Manitowoc and Trinity Industries”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Manitowoc | $2.32 billion | 0.36 | $7.20 million | $0.55 | 42.49 |
| Trinity Industries | $2.16 billion | 0.97 | $253.10 million | $4.15 | 6.34 |
Profitability
This table compares Manitowoc and Trinity Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Manitowoc | 0.87% | 3.86% | 1.43% |
| Trinity Industries | 16.62% | 18.51% | 2.56% |
Dividends
Manitowoc pays an annual dividend of $0.08 per share and has a dividend yield of 0.3%. Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.7%. Manitowoc pays out 14.5% of its earnings in the form of a dividend. Trinity Industries pays out 29.9% 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. 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 & Institutional Ownership
78.7% of Manitowoc shares are held by institutional investors. Comparatively, 86.6% of Trinity Industries shares are held by institutional investors. 4.0% of Manitowoc 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, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current recommendations for Manitowoc and Trinity Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Manitowoc | 2 | 1 | 0 | 0 | 1.33 |
| Trinity Industries | 0 | 3 | 0 | 0 | 2.00 |
Manitowoc presently has a consensus price target of $14.00, suggesting a potential downside of 40.09%. Trinity Industries has a consensus price target of $35.00, suggesting a potential upside of 33.06%. Given Trinity Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Trinity Industries is more favorable than Manitowoc.
Volatility & Risk
Manitowoc has a beta of 1.74, meaning that its share price is 74% more volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Summary
Trinity Industries beats Manitowoc on 11 of the 16 factors compared between the two stocks.
About Manitowoc
The Manitowoc Company, Inc. provides engineered lifting solutions in the Americas, Europe, Africa, the Middle East, the Asia Pacific, and internationally. It designs, manufactures, and distributes crawler-mounted lattice-boom cranes under the Manitowoc brand; a line of top-slewing and self-erecting tower cranes under the Potain brand; mobile hydraulic cranes under the Grove, Shuttlelift, and National Crane brands; and hydraulic boom trucks under the National Crane brand. The company also provides aftermarket services, such as sale of parts and accessories, field service work, routine maintenance services, technical support, erection and decommissioning services, crane and component remanufacturing, training, and telematics services. Its crane products are used in various applications, including energy production/distribution and utilities; petrochemical and industrial; infrastructure, such as road, bridge, and airport construction; and commercial and residential construction. The company serves a range of customers, including dealers, rental companies, contractors, and government entities in the petrochemical, industrial, commercial construction, power and utilities, infrastructure, and residential construction end markets. The Manitowoc Company, Inc. was founded in 1902 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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