Trinity Industries (TRN) & Icahn Enterprises L.P. (IEP) Head-To-Head Analysis
Trinity Industries (NYSE: TRN) and Icahn Enterprises L.P. (NASDAQ:IEP) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Trinity Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Icahn Enterprises L.P. pays an annual dividend of $3.00 per share and has a dividend yield of 5.5%. Trinity Industries pays out 32.1% of its earnings in the form of a dividend. Icahn Enterprises L.P. pays out 38.2% 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. Icahn Enterprises L.P. has raised its dividend for 6 consecutive years. Icahn Enterprises L.P. is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Trinity Industries and Icahn Enterprises L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Icahn Enterprises L.P.||6.35%||15.51%||4.18%|
Institutional & Insider Ownership
80.8% of Trinity Industries shares are held by institutional investors. Comparatively, 96.8% of Icahn Enterprises L.P. shares are held by institutional investors. 2.0% of Trinity Industries shares are held by insiders. Comparatively, 90.1% of Icahn Enterprises L.P. shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Trinity Industries and Icahn Enterprises L.P.’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Trinity Industries||$4.00 billion||1.34||$858.50 million||$1.62||21.80|
|Icahn Enterprises L.P.||N/A||N/A||N/A||$7.85||6.94|
Trinity Industries has higher revenue and earnings than Icahn Enterprises L.P.. Icahn Enterprises L.P. is trading at a lower price-to-earnings ratio than Trinity Industries, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations for Trinity Industries and Icahn Enterprises L.P., as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Icahn Enterprises L.P.||0||0||1||0||3.00|
Trinity Industries currently has a consensus price target of $32.83, suggesting a potential downside of 7.01%. Icahn Enterprises L.P. has a consensus price target of $61.00, suggesting a potential upside of 11.95%. Given Icahn Enterprises L.P.’s stronger consensus rating and higher probable upside, analysts clearly believe Icahn Enterprises L.P. is more favorable than Trinity Industries.
Risk and Volatility
Trinity Industries has a beta of 2.19, indicating that its stock price is 119% more volatile than the S&P 500. Comparatively, Icahn Enterprises L.P. has a beta of 1.73, indicating that its stock price is 73% more volatile than the S&P 500.
Icahn Enterprises L.P. beats Trinity Industries on 10 of the 15 factors compared between the two stocks.
About Trinity Industries
Trinity Industries, Inc. is a diversified industrial company that owns businesses providing products and services to the energy, chemical, agriculture, transportation and construction sectors. The Company’s products and services include railcars and railcar parts; parts and steel components; the leasing, management and maintenance of railcars; highway products; construction aggregates; inland barges; structural wind towers; steel utility structures; storage and distribution containers, and trench shields and shoring products. The Company’s segments include the Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group, Railcar Leasing and Management Services Group, and All Other. Its All Other segment includes its captive insurance and transportation companies, and other peripheral businesses. It manufactures a line of railcars, including autorack cars, box cars, covered hopper cars, gondola cars, intermodal cars, open hopper cars and tank cars.
About Icahn Enterprises L.P.
Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).
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