Trinity Industries (NYSE:TRN) versus MSA Safety Incorporporated (NYSE:MSA) Head-To-Head Analysis

MSA Safety Incorporporated (NYSE:MSA) and Trinity Industries (NYSE:TRN) are both mid-cap industrials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

92.5% of MSA Safety Incorporporated shares are owned by institutional investors. Comparatively, 86.6% of Trinity Industries shares are owned by institutional investors. 0.7% of MSA Safety Incorporporated shares are owned by insiders. Comparatively, 2.1% of Trinity Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

MSA Safety Incorporporated pays an annual dividend of $2.16 per share and has a dividend yield of 1.2%. Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.4%. MSA Safety Incorporporated pays out 26.9% of its earnings in the form of a dividend. Trinity Industries pays out 29.9% 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. MSA Safety Incorporporated has raised its dividend for 56 consecutive years and Trinity Industries has raised its dividend for 16 consecutive years.

Risk & Volatility

MSA Safety Incorporporated has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for MSA Safety Incorporporated and Trinity Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSA Safety Incorporporated	0	4	2	0	2.33
Trinity Industries	0	2	1	0	2.33

MSA Safety Incorporporated presently has a consensus target price of $211.33, indicating a potential upside of 17.57%. Trinity Industries has a consensus target price of $35.00, indicating a potential upside of 24.64%. Given Trinity Industries’ higher possible upside, analysts clearly believe Trinity Industries is more favorable than MSA Safety Incorporporated.

Profitability

This table compares MSA Safety Incorporporated and Trinity Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSA Safety Incorporporated	16.13%	25.13%	13.24%
Trinity Industries	16.62%	18.51%	2.56%

Valuation & Earnings

This table compares MSA Safety Incorporporated and Trinity Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSA Safety Incorporporated	$1.95 billion	3.56	$278.92 million	$8.04	22.36
Trinity Industries	$2.16 billion	1.04	$253.10 million	$4.15	6.77

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

Summary

MSA Safety Incorporporated beats Trinity Industries on 10 of the 16 factors compared between the two stocks.

About MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

About Trinity Industries

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.