Financial Review: Miller Industries (NYSE:MLR) vs. THK (OTCMKTS:THKLY)

Miller Industries (NYSE:MLR) and THK (OTCMKTS:THKLY) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, profitability, analyst recommendations and valuation.

Profitability

This table compares Miller Industries and THK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Miller Industries	1.86%	3.41%	2.40%
THK	N/A	N/A	N/A

Risk & Volatility

Miller Industries has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, THK has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Valuation & Earnings

This table compares Miller Industries and THK”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$771.44 million	0.75	$23.01 million	$1.24	41.09
THK	$1.61 billion	2.65	-$468.27 million	$0.30	59.67

Miller Industries has higher earnings, but lower revenue than THK. Miller Industries is trading at a lower price-to-earnings ratio than THK, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings for Miller Industries and THK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
THK	0	1	0	0	2.00

Miller Industries presently has a consensus price target of $54.00, indicating a potential upside of 5.99%. Given Miller Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Miller Industries is more favorable than THK.

Institutional & Insider Ownership

79.2% of Miller Industries shares are held by institutional investors. 4.5% of Miller Industries shares are held 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.

Dividends

Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. THK pays an annual dividend of $0.37 per share and has a dividend yield of 2.1%. Miller Industries pays out 67.7% of its earnings in the form of a dividend. THK pays out 123.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Miller Industries has raised its dividend for 2 consecutive years.

Summary

Miller Industries beats THK on 12 of the 17 factors compared between the two stocks.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.

About THK

THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.