Critical Comparison: Twin Disc (NASDAQ:TWIN) versus THT Heat Transfer Technology (OTCMKTS:THTI)

THT Heat Transfer Technology (OTCMKTS:THTI) and Twin Disc (NASDAQ:TWIN) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Profitability

This table compares THT Heat Transfer Technology and Twin Disc’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
THT Heat Transfer Technology	N/A	N/A	N/A
Twin Disc	7.32%	2.77%	1.29%

Institutional & Insider Ownership

65.2% of Twin Disc shares are owned by institutional investors. 22.4% of THT Heat Transfer Technology shares are owned by insiders. Comparatively, 22.1% of Twin Disc shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares THT Heat Transfer Technology and Twin Disc”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
THT Heat Transfer Technology	N/A	N/A	N/A	N/A	N/A
Twin Disc	$340.74 million	0.97	-$1.89 million	$1.84	12.40

THT Heat Transfer Technology has higher earnings, but lower revenue than Twin Disc.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for THT Heat Transfer Technology and Twin Disc, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
THT Heat Transfer Technology	0	0	0	0	0.00
Twin Disc	0	1	2	0	2.67

Twin Disc has a consensus target price of $30.00, suggesting a potential upside of 31.52%. Given Twin Disc’s stronger consensus rating and higher possible upside, analysts plainly believe Twin Disc is more favorable than THT Heat Transfer Technology.

Summary

Twin Disc beats THT Heat Transfer Technology on 8 of the 9 factors compared between the two stocks.

About THT Heat Transfer Technology

THT Heat Transfer Technology, Inc. engages in the manufacture and trading of plate heat exchangers and related products. It offers plate heat exchangers, heat exchanger units, air-cooled heat exchangers, and shell-and-tube heat exchangers. The company was founded on August 7, 2006 and is headquartered in Siping, China.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.