Twin Disc (TWIN) & The Competition Critical Comparison

Twin Disc (NASDAQ:TWIN) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare Twin Disc to similar companies based on the strength of its earnings, institutional ownership, dividends, profitability, valuation, analyst recommendations and risk.

Institutional & Insider Ownership

65.2% of Twin Disc shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are owned by institutional investors. 21.1% of Twin Disc shares are owned by insiders. Comparatively, 14.3% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Twin Disc and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	9.06%	6.78%	3.31%
Twin Disc Competitors	-1,044.47%	-15.02%	0.57%

Risk and Volatility

Twin Disc has a beta of 0.5, indicating that its share price is 50% less volatile than the S&P 500. Comparatively, Twin Disc’s rivals have a beta of 5.11, indicating that their average share price is 411% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Twin Disc and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	0	1	2	0	2.67
Twin Disc Competitors	4194	14692	18188	804	2.41

Twin Disc currently has a consensus target price of $30.00, suggesting a potential upside of 14.92%. As a group, “Machinery” companies have a potential upside of 32.43%. Given Twin Disc’s rivals higher possible upside, analysts plainly believe Twin Disc has less favorable growth aspects than its rivals.

Dividends

Twin Disc pays an annual dividend of $0.20 per share and has a dividend yield of 0.8%. Twin Disc pays out 8.4% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend.

Earnings and Valuation

This table compares Twin Disc and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Twin Disc	$381.27 million	$27.08 million	10.97
Twin Disc Competitors	$4.63 billion	$364.05 million	3.84

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

Summary

Twin Disc beats its rivals on 9 of the 15 factors compared.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.