Tennant (NYSE:TNC) & Stabilus (OTCMKTS:SBLUY) Critical Review

Tennant (NYSE:TNC) and Stabilus (OTCMKTS:SBLUY) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Tennant and Stabilus”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.20 billion	0.96	$43.80 million	$1.02	66.58
Stabilus	N/A	N/A	N/A	N/A	N/A

Tennant has higher revenue and earnings than Stabilus.

Insider and Institutional Ownership

93.3% of Tennant shares are owned by institutional investors. 3.5% of Tennant shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Tennant and Stabilus, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	1	2	1	0	2.00
Stabilus	0	0	0	0	0.00

Tennant currently has a consensus price target of $91.00, suggesting a potential upside of 33.99%. Given Tennant’s stronger consensus rating and higher possible upside, equities analysts plainly believe Tennant is more favorable than Stabilus.

Profitability

This table compares Tennant and Stabilus’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	1.50%	13.32%	6.07%
Stabilus	N/A	N/A	N/A

Summary

Tennant beats Stabilus on 9 of the 9 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Stabilus

Stabilus S.A., together with its subsidiaries, manufactures and sells gas springs and dampers, and electric tailgate opening and closing equipment in Europe and internationally. The company offers non-locking, locking, and swivel chair gas springs; motion and vibration dampers; and electric motor drives and CAD-configurators, as well as services and spare parts. Its products are used in automotive, furniture, swivel chair, medical and rehabilitation technology, RV and motorhome, transportation and traffic, agricultural and construction machinery, other commercial vehicle, and machine construction applications, as well as other applications, including leisure, house and building technology, sales and cooling counters, kiosks, and automotive overrun brakes. The company was formerly known as Servus HoldCo S.à r.l. and changed its name to Stabilus S.A. in May 2014. Stabilus S.A. was founded in 1934 and is based in Luxembourg.