Trinity Industries (NYSE:TRN – Get Free Report) and Daimler Truck (OTCMKTS:DTRUY – 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 valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.
Valuation and Earnings
This table compares Trinity Industries and Daimler Truck”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Trinity Industries | $2.16 billion | 0.93 | $253.10 million | $4.15 | 6.07 |
| Daimler Truck | $51.50 billion | 0.69 | $2.23 billion | $0.50 | 46.54 |
Daimler Truck has higher revenue and earnings than Trinity Industries. Trinity Industries is trading at a lower price-to-earnings ratio than Daimler Truck, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Trinity Industries and Daimler Truck’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Trinity Industries | 16.62% | 18.51% | 2.56% |
| Daimler Truck | 5.87% | 4.79% | 1.46% |
Insider and Institutional Ownership
86.6% of Trinity Industries shares are held by institutional investors. 2.1% of Trinity Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Risk and Volatility
Trinity Industries has a beta of 1.37, indicating that its stock price is 37% more volatile than the S&P 500. Comparatively, Daimler Truck has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings for Trinity Industries and Daimler Truck, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Trinity Industries | 0 | 3 | 0 | 0 | 2.00 |
| Daimler Truck | 0 | 3 | 5 | 1 | 2.78 |
Trinity Industries currently has a consensus target price of $35.00, indicating a potential upside of 38.88%. Given Trinity Industries’ higher probable upside, analysts plainly believe Trinity Industries is more favorable than Daimler Truck.
Dividends
Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.9%. Daimler Truck pays an annual dividend of $0.79 per share and has a dividend yield of 3.4%. Trinity Industries pays out 29.9% of its earnings in the form of a dividend. Daimler Truck pays out 158.0% 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 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.
Summary
Trinity Industries beats Daimler Truck on 12 of the 18 factors compared between the two stocks.
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.
About Daimler Truck
Daimler Truck Holding AG manufactures and sells commercial trucks. The company was founded in 2021 and is based in Stuttgart, Germany.
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