Contrasting Terex (TEX) and Its Rivals

Terex (NYSE:TEX) is one of 436 public companies in the “Machinery” industry, but how does it compare to its peers? We will compare Terex to related businesses based on the strength of its profitability, institutional ownership, dividends, risk, valuation, analyst recommendations and earnings.

Earnings & Valuation

This table compares Terex and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terex	$5.42 billion	$221.00 million	28.32
Terex Competitors	$4.77 billion	$363.05 million	3.54

Terex has higher revenue, but lower earnings than its peers. Terex is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Terex pays out 34.3% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.7% of their earnings in the form of a dividend. Terex has increased its dividend for 5 consecutive years. Terex lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

92.9% of Terex shares are owned by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are owned by institutional investors. 1.6% of Terex shares are owned by insiders. Comparatively, 14.2% of shares of all “Machinery” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Terex and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terex	2.64%	11.79%	5.36%
Terex Competitors	-1,044.47%	-15.12%	0.54%

Analyst Ratings

This is a summary of recent ratings for Terex and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terex	0	5	5	2	2.75
Terex Competitors	4190	14674	18172	803	2.41

Terex presently has a consensus price target of $74.73, indicating a potential upside of 33.25%. As a group, “Machinery” companies have a potential upside of 32.05%. Given Terex’s stronger consensus rating and higher probable upside, analysts plainly believe Terex is more favorable than its peers.

Volatility and Risk

Terex has a beta of 1.47, meaning that its stock price is 47% more volatile than the S&P 500. Comparatively, Terex’s peers have a beta of 4.70, meaning that their average stock price is 370% more volatile than the S&P 500.

Summary

Terex beats its peers on 9 of the 15 factors compared.

Terex Company Profile

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.