IHI (OTCMKTS:IHICY – Get Free Report) and Titan International (NYSE:TWI – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Volatility & Risk
IHI has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Titan International has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares IHI and Titan International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| IHI | N/A | N/A | N/A |
| Titan International | -4.11% | -1.56% | -0.48% |
Insider & Institutional Ownership
80.4% of Titan International shares are owned by institutional investors. 6.1% of Titan International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares IHI and Titan International”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| IHI | $10.92 billion | 1.57 | $1.06 billion | $1.03 | 15.35 |
| Titan International | $1.87 billion | 0.23 | -$63.49 million | ($1.21) | -5.50 |
IHI has higher revenue and earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than IHI, indicating that it is currently the more affordable of the two stocks.
Dividends
IHI pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Titan International pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. IHI pays out 6.8% of its earnings in the form of a dividend. Titan International pays out -1.7% 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for IHI and Titan International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| IHI | 0 | 2 | 0 | 0 | 2.00 |
| Titan International | 1 | 0 | 1 | 0 | 2.00 |
Titan International has a consensus target price of $13.00, suggesting a potential upside of 95.34%. Given Titan International’s higher probable upside, analysts plainly believe Titan International is more favorable than IHI.
Summary
IHI beats Titan International on 9 of the 15 factors compared between the two stocks.
About IHI
IHI Corporation designs and builds engineering solutions in Japan and internationally. The company operates through four segments: Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defense. The company engages in the manufacturing, sale, and provision of services related to power systems plants for land use and power systems for chips; carbon solutions comprising boilers and storage facilities; components for nuclear power plants; bridges and water gates, transport systems, shield systems, and concrete construction materials; vehicular turbochargers, parking, heat treatment and surface engineering; transport machineries; logistics and industrial systems; and rotating machineries comprising compressors, separation systems, and turbochargers for ships. It also offers 3D laser radars, X-ray inspection systems, monitoring equipment, oil leak monitors, vibration control systems and seismic isolation floor systems, and disaster prevention equipment; environmental monitoring; cryogenic products, material handling systems, steelmaking equipment, pulp and paper machinery, agricultural machinery, life associated equipment; aero engines; rocket, space utilization, defense, and traffic control systems; and communication, electronic, electric measuring, information processing machines, and other instruments and equipment. In addition, the company sells and rents real estate. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.
About Titan International
Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. In addition, it provides bias and light truck tires; and products for ATVs, rock climbers, and turf applications, as well as specialty products and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and its distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in West Chicago, Illinois.
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