Financial Analysis: Titan Machinery (TITN) & Its Peers

Titan Machinery (NASDAQ: TITN) is one of 25 public companies in the “Retail stores, not elsewhere classified” industry, but how does it contrast to its competitors? We will compare Titan Machinery to related businesses based on the strength of its institutional ownership, earnings, dividends, risk, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

78.8% of Titan Machinery shares are held by institutional investors. Comparatively, 41.6% of shares of all “Retail stores, not elsewhere classified” companies are held by institutional investors. 14.8% of Titan Machinery shares are held by insiders. Comparatively, 13.5% of shares of all “Retail stores, not elsewhere classified” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Titan Machinery and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Titan Machinery 0 1 2 0 2.67
Titan Machinery Competitors 142 701 1055 53 2.52

Titan Machinery currently has a consensus price target of $40.33, indicating a potential upside of 15.44%. As a group, “Retail stores, not elsewhere classified” companies have a potential upside of 12.61%. Given Titan Machinery’s stronger consensus rating and higher probable upside, research analysts plainly believe Titan Machinery is more favorable than its competitors.

Profitability

This table compares Titan Machinery and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Titan Machinery 2.10% 11.04% 4.92%
Titan Machinery Competitors -16.79% 14.55% 1.93%

Earnings & Valuation

This table compares Titan Machinery and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Titan Machinery $1.41 billion $19.36 million 24.26
Titan Machinery Competitors $8.29 billion $479.17 million -9.79

Titan Machinery’s competitors have higher revenue and earnings than Titan Machinery. Titan Machinery is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Titan Machinery has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500. Comparatively, Titan Machinery’s competitors have a beta of 2.18, meaning that their average stock price is 118% more volatile than the S&P 500.

Summary

Titan Machinery beats its competitors on 8 of the 13 factors compared.

About Titan Machinery

Titan Machinery, Inc. engages in the management of agricultural and construction equipment stores. It operates through the following segments: Agriculture, Construction and International. The Agriculture segment sells services and rents machinery and related parts and attachments, for uses from large-scale farming to home and garden use in North America. The Construction segment focuses on machinery and related parts and attachments, for uses from heavy construction to light industrial machinery. The International segment deals with the customers in Eastern Europe. The company was founded by David Joseph Meyer in 1980 and is headquartered in West Fargo, ND.

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