Head-To-Head Survey: Titan International (NYSE:TWI) versus IHI (OTCMKTS:IHICY)

Titan International (NYSE:TWI) and IHI (OTCMKTS:IHICY) are both industrials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, institutional ownership, earnings, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

80.4% of Titan International shares are owned by institutional investors. 6.1% of Titan International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Titan International and IHI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan International	1	0	1	0	2.00
IHI	0	2	0	0	2.00

Titan International presently has a consensus target price of $13.00, suggesting a potential upside of 95.34%. Given Titan International’s higher probable upside, equities research analysts clearly believe Titan International is more favorable than IHI.

Volatility and Risk

Titan International has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, IHI has a beta of 0.68, meaning that its stock price is 32% less volatile than the S&P 500.

Dividends

Titan International pays an annual dividend of $0.02 per share and has a dividend yield of 0.3%. IHI pays an annual dividend of $0.07 per share and has a dividend yield of 0.4%. Titan International pays out -1.7% of its earnings in the form of a dividend. IHI pays out 6.8% 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.

Profitability

This table compares Titan International and IHI’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%
IHI	N/A	N/A	N/A

Earnings & Valuation

This table compares Titan International and IHI”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan International	$1.87 billion	0.23	-$63.49 million	($1.21)	-5.50
IHI	$10.92 billion	1.57	$1.06 billion	$1.03	15.35

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

Summary

IHI beats Titan International on 9 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 IHI

IHI Corporation designs and builds engineering solutions in Japan and internationally. The company operates through four segments: Resources, Energy and Environment; Social Infrastructure; Industrial Systems and General-Purpose Machinery; and Aero Engine, Space and Defense. The company engages in the manufacturing, sale, and provision of services related to power systems plants for land use and power systems for chips; carbon solutions comprising boilers and storage facilities; components for nuclear power plants; bridges and water gates, transport systems, shield systems, and concrete construction materials; vehicular turbochargers, parking, heat treatment and surface engineering; transport machineries; logistics and industrial systems; and rotating machineries comprising compressors, separation systems, and turbochargers for ships. It also offers 3D laser radars, X-ray inspection systems, monitoring equipment, oil leak monitors, vibration control systems and seismic isolation floor systems, and disaster prevention equipment; environmental monitoring; cryogenic products, material handling systems, steelmaking equipment, pulp and paper machinery, agricultural machinery, life associated equipment; aero engines; rocket, space utilization, defense, and traffic control systems; and communication, electronic, electric measuring, information processing machines, and other instruments and equipment. In addition, the company sells and rents real estate. The company was formerly known as Ishikawajima-Harima Heavy Industries Co., Ltd and changed its name to IHI Corporation in 2007. IHI Corporation was founded in 1853 and is headquartered in Tokyo, Japan.