Head-To-Head Comparison: Toromont Industries (OTCMKTS:TMTNF) vs. Titan Machinery (NASDAQ:TITN)

Titan Machinery (NASDAQ:TITN) and Toromont Industries (OTCMKTS:TMTNF) are both retail/wholesale companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Institutional & Insider Ownership

78.4% of Titan Machinery shares are held by institutional investors. Comparatively, 53.3% of Toromont Industries shares are held by institutional investors. 10.5% of Titan Machinery shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Titan Machinery and Toromont Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan Machinery	4.08%	18.40%	6.88%
Toromont Industries	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Titan Machinery and Toromont Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan Machinery	0	0	4	0	3.00
Toromont Industries	0	1	0	0	2.00

Titan Machinery currently has a consensus target price of $45.33, indicating a potential upside of 94.23%. Toromont Industries has a consensus target price of $118.75, indicating a potential upside of 31.30%. Given Titan Machinery’s stronger consensus rating and higher possible upside, research analysts plainly believe Titan Machinery is more favorable than Toromont Industries.

Earnings & Valuation

This table compares Titan Machinery and Toromont Industries’ top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan Machinery	$2.76 billion	0.19	$112.44 million	$4.94	4.72
Toromont Industries	N/A	N/A	N/A	$1.57	57.50

Titan Machinery has higher revenue and earnings than Toromont Industries. Titan Machinery is trading at a lower price-to-earnings ratio than Toromont Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Titan Machinery beats Toromont Industries on 10 of the 11 factors compared between the two stocks.

About Titan Machinery

Titan Machinery Inc. owns and operates a network of full service agricultural and construction equipment stores in the United States, Europe, and Australia. It operates through four segments: Agriculture, Construction, Europe, and Australia. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, feed stock, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company's construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, and road and highway construction machinery. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Idaho, Kansas, Missouri, Washington, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; Bulgaria, Germany, Romania, and Ukraine, Europe; and New South Wales, South Australia, and Victoria, Australia. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.

About Toromont Industries

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.