Icahn Enterprises L.P. (NASDAQ: IEP) and Trinity Industries (NYSE:TRN) are both mid-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their institutional ownership, earnings, profitability, analyst recommendations, dividends, valuation and risk.
Valuation & Earnings
This table compares Icahn Enterprises L.P. and Trinity Industries’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Icahn Enterprises L.P.||$18.67 billion||N/A||$1.85 billion||$7.85||7.06|
|Trinity Industries||$4.00 billion||1.31||$858.50 million||$1.62||21.38|
Icahn Enterprises L.P. has higher revenue and earnings than Trinity Industries. Icahn Enterprises L.P. is trading at a lower price-to-earnings ratio than Trinity Industries, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Icahn Enterprises L.P. has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 2.19, meaning that its share price is 119% more volatile than the S&P 500.
Icahn Enterprises L.P. pays an annual dividend of $3.00 per share and has a dividend yield of 5.4%. Trinity Industries pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Icahn Enterprises L.P. pays out 38.2% of its earnings in the form of a dividend. Trinity Industries pays out 32.1% 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. Trinity Industries has increased its dividend for 6 consecutive years.
This is a summary of recent ratings for Icahn Enterprises L.P. and Trinity Industries, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Icahn Enterprises L.P.||0||0||1||0||3.00|
Icahn Enterprises L.P. presently has a consensus target price of $61.00, indicating a potential upside of 10.11%. Trinity Industries has a consensus target price of $34.29, indicating a potential downside of 0.99%. Given Icahn Enterprises L.P.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Icahn Enterprises L.P. is more favorable than Trinity Industries.
This table compares Icahn Enterprises L.P. and Trinity Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Icahn Enterprises L.P.||6.35%||15.51%||4.18%|
Institutional and Insider Ownership
96.8% of Icahn Enterprises L.P. shares are owned by institutional investors. Comparatively, 80.8% of Trinity Industries shares are owned by institutional investors. 90.1% of Icahn Enterprises L.P. shares are owned by company insiders. Comparatively, 2.0% of Trinity Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Icahn Enterprises L.P. beats Trinity Industries on 11 of the 16 factors compared between the two stocks.
Icahn Enterprises L.P. Company Profile
Icahn Enterprises L.P. (Icahn Enterprises) is a holding company. The Company’s segments include Automotive, Energy, Metals, Railcar, Gaming, Food Packaging, Mining, Real Estate and Home Fashion. The Company’s Investment segment includes various private investment funds. The Company operates its Automotive segment through its ownership in Federal-Mogul Holdings Corporation and IEH Auto Parts Holding LLC. The Company operates Energy segment through its controlling interest in CVR Energy, Inc. It operates its Metals segment through its subsidiary, PSC Metals, Inc. The Company operates its Railcar segment through its ownership interests in American Railcar Industries, Inc. Its Food Packaging segment consists of ownership in Viskase Companies, Inc. The Company’s Real Estate operations consist of rental real estate, property development and associated resorts. It also owns a limited partner interest in Icahn Enterprises Holdings L.P. (Icahn Enterprises Holdings).
Trinity Industries Company Profile
Trinity Industries, Inc. is a diversified industrial company that owns businesses providing products and services to the energy, chemical, agriculture, transportation and construction sectors. The Company’s products and services include railcars and railcar parts; parts and steel components; the leasing, management and maintenance of railcars; highway products; construction aggregates; inland barges; structural wind towers; steel utility structures; storage and distribution containers, and trench shields and shoring products. The Company’s segments include the Rail Group, Construction Products Group, Inland Barge Group, Energy Equipment Group, Railcar Leasing and Management Services Group, and All Other. Its All Other segment includes its captive insurance and transportation companies, and other peripheral businesses. It manufactures a line of railcars, including autorack cars, box cars, covered hopper cars, gondola cars, intermodal cars, open hopper cars and tank cars.
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