Terex (NYSE: TEX) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its competitors? We will compare Terex to related companies based on the strength of its dividends, earnings, valuation, profitability, institutional ownership, risk and analyst recommendations.

Institutional & Insider Ownership

89.2% of Terex shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.5% of Terex shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Terex and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Terex $4.44 billion -$176.10 million -23.51
Terex Competitors $6.06 billion $48.37 million 165.91

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

Profitability

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

Net Margins Return on Equity Return on Assets
Terex -2.62% 7.01% 2.60%
Terex Competitors 4.04% 13.45% 3.91%

Risk & Volatility

Terex has a beta of 1.89, indicating that its stock price is 89% more volatile than the S&P 500. Comparatively, Terex’s competitors have a beta of 1.44, indicating that their average stock price is 44% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Terex and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex 2 7 5 0 2.21
Terex Competitors 171 876 953 17 2.40

Terex currently has a consensus target price of $40.33, indicating a potential downside of 10.63%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.70%. Given Terex’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Terex has less favorable growth aspects than its competitors.

Dividends

Terex pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Terex pays out -16.7% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 35.8% of their earnings in the form of a dividend. Terex has raised its dividend for 3 consecutive years.

Summary

Terex competitors beat Terex on 12 of the 15 factors compared.

Terex Company Profile

Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.

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