Toro (NYSE:TTC) versus Wabash National (NYSE:WNC) Head-To-Head Review

Toro (NYSE:TTC) and Wabash National (NYSE:WNC) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Valuation and Earnings

This table compares Toro and Wabash National”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$4.75 billion	2.13	$316.10 million	$3.74	28.53
Wabash National	$1.54 billion	0.31	$211.45 million	($3.41)	-3.43

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

Profitability

This table compares Toro and Wabash National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toro	7.64%	31.86%	12.35%
Wabash National	-9.13%	-42.42%	-10.90%

Analyst Recommendations

This is a summary of current ratings for Toro and Wabash National, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	3	3	0	2.50
Wabash National	1	1	2	1	2.60

Toro currently has a consensus target price of $111.67, suggesting a potential upside of 4.64%. Wabash National has a consensus target price of $23.33, suggesting a potential upside of 99.36%. Given Wabash National’s stronger consensus rating and higher probable upside, analysts clearly believe Wabash National is more favorable than Toro.

Volatility and Risk

Toro has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500.

Institutional & Insider Ownership

87.9% of Toro shares are held by institutional investors. Comparatively, 97.0% of Wabash National shares are held by institutional investors. 1.9% of Toro shares are held by company insiders. Comparatively, 2.8% of Wabash National shares are held by company 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.

Dividends

Toro pays an annual dividend of $1.56 per share and has a dividend yield of 1.5%. Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.7%. Toro pays out 41.7% of its earnings in the form of a dividend. Wabash National pays out -9.4% 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. Toro has raised its dividend for 21 consecutive years. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Toro beats Wabash National on 10 of the 18 factors compared between the two stocks.

About Toro

The Toro Company designs, manufactures and markets equipment and services for maintaining outdoor environments. Its products serve homeowners and professional customers in areas such as landscaping, golf course and sports-field maintenance, and snow and ice management. The company’s offerings include lawn mowers, turf and landscape maintenance equipment, irrigation systems, utility and underground construction equipment, and snow removal products. Its portfolio includes brands such as Toro, Exmark and Ditch Witch.

About Wabash National

Wabash National Corporation designs and manufactures equipment and solutions for the transportation, logistics and distribution industries. Its products include dry and refrigerated van trailers, platform trailers, tank trailers, truck bodies and equipment for final-mile delivery. The company also supplies parts, components and services for commercial vehicles and offers products used in applications such as cold-chain transportation and warehouse operations. Wabash serves customers primarily in North America.