Allison Transmission (NYSE:ALSN) & Titan International (NYSE:TWI) Critical Survey

Titan International (NYSE:TWI) and Allison Transmission (NYSE:ALSN) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings for Titan International and Allison Transmission, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan International	1	0	1	0	2.00
Allison Transmission	0	4	3	2	2.78

Titan International currently has a consensus target price of $13.00, suggesting a potential upside of 89.67%. Allison Transmission has a consensus target price of $130.14, suggesting a potential upside of 19.28%. Given Titan International’s higher probable upside, analysts clearly believe Titan International is more favorable than Allison Transmission.

Earnings & Valuation

This table compares Titan International and Allison Transmission”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan International	$1.83 billion	0.24	-$63.49 million	($1.21)	-5.66
Allison Transmission	$3.01 billion	2.99	$623.00 million	$6.29	17.35

Allison Transmission has higher revenue and earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

80.4% of Titan International shares are owned by institutional investors. Comparatively, 96.9% of Allison Transmission shares are owned by institutional investors. 6.1% of Titan International shares are owned by insiders. Comparatively, 1.1% of Allison Transmission shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Titan International has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500.

Profitability

This table compares Titan International and Allison Transmission’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan International	-4.11%	-1.56%	-0.48%
Allison Transmission	12.02%	38.18%	9.99%

Summary

Allison Transmission beats Titan International on 12 of the 15 factors compared between the two stocks.

About Titan International

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. In addition, it provides bias and light truck tires; and products for ATVs, rock climbers, and turf applications, as well as specialty products and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and its distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in West Chicago, Illinois.

About Allison Transmission

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.