AB SKF (OTCMKTS:SKFRY) vs. Terex (NYSE:TEX) Head to Head Review

AB SKF (OTCMKTS:SKFRY) and Terex (NYSE:TEX) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, institutional ownership, dividends, risk, earnings, analyst recommendations and profitability.

Analyst Ratings

This is a summary of recent ratings for AB SKF and Terex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB SKF	1	4	1	0	2.00
Terex	0	5	5	2	2.75

Terex has a consensus target price of $78.91, indicating a potential upside of 33.72%. Given Terex’s stronger consensus rating and higher probable upside, analysts clearly believe Terex is more favorable than AB SKF.

Dividends

AB SKF pays an annual dividend of $0.60 per share and has a dividend yield of 2.2%. Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. AB SKF pays out 56.6% of its earnings in the form of a dividend. Terex pays out 34.7% 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. Terex has raised its dividend for 5 consecutive years.

Earnings & Valuation

This table compares AB SKF and Terex”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB SKF	$9.36 billion	1.33	$401.34 million	$1.06	25.84
Terex	$5.42 billion	1.24	$221.00 million	$1.96	30.11

AB SKF has higher revenue and earnings than Terex. AB SKF is trading at a lower price-to-earnings ratio than Terex, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

AB SKF has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500. Comparatively, Terex has a beta of 1.5, meaning that its stock price is 50% more volatile than the S&P 500.

Profitability

This table compares AB SKF and Terex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB SKF	5.05%	13.27%	6.91%
Terex	2.23%	12.24%	5.16%

Insider & Institutional Ownership

0.1% of AB SKF shares are owned by institutional investors. Comparatively, 92.9% of Terex shares are owned by institutional investors. 1.6% of Terex shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Terex beats AB SKF on 11 of the 18 factors compared between the two stocks.

About AB SKF

AB SKF (publ) designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling, mounted and housings, super-precision, slewing, plain, magnetic, and thin section bearings; industrial and automotive seals; lubricants, manual lubrication tools, lubricators, automatic lubrication systems, and lubrication system components; maintenance products, such as hydraulic, mechanical, and alignment tools, as well as heaters; belts, pulleys, chains, sprockets, bushings and hubs, couplings, and bolts and tightening systems; condition monitoring systems; test and measuring equipment, such as waviness and roundness analyzers, noise and vibration testers, and grease test rigs, as well as calibration with traceability, machine training and support, and upgrades and refurbishment services; and vehicle aftermarket products. It also provides application engineering services consisting of technical consultancy, numerical simulation and design, and root cause analysis; asset management services, such as assessment and benchmarking, maintenance strategy review, spare parts and inventory management, and lubrication management; condition-based maintenance, including vibration analysis and diagnostics, thermography, lubrication analysis, and condition monitoring system installation; mechanical maintenance comprising mounting and dismounting, precision alignment, and balancing; remanufacturing and customization; and training solutions, which include instructor-led training, e-learning courses, and webinar recordings. The company serves the aerospace, agriculture, automotive, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing, ocean energy, pulp and paper, railways, and wind industries. AB SKF (publ) was incorporated in 1907 and is headquartered in Gothenburg, Sweden.

About Terex

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.