Head to Head Review: Global Industrial (NYSE:GIC) vs. Finning International (OTCMKTS:FINGF)

Finning International (OTCMKTS:FINGF) and Global Industrial (NYSE:GIC) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, institutional ownership, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Finning International and Global Industrial, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finning International	0	0	1	0	3.00
Global Industrial	0	0	0	0	N/A

Finning International currently has a consensus price target of $36.30, indicating a potential upside of 18.90%. Given Finning International’s higher probable upside, analysts clearly believe Finning International is more favorable than Global Industrial.

Earnings & Valuation

This table compares Finning International and Global Industrial’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Finning International	N/A	N/A	N/A	$1.76	17.36
Global Industrial	$1.27 billion	1.21	$70.70 million	$1.85	21.90

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

Institutional and Insider Ownership

35.6% of Finning International shares are held by institutional investors. Comparatively, 31.2% of Global Industrial shares are held by institutional investors. 66.3% of Global Industrial shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Finning International and Global Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finning International	N/A	N/A	N/A
Global Industrial	5.55%	29.76%	13.75%

Dividends

Finning International pays an annual dividend of $0.66 per share and has a dividend yield of 2.2%. Global Industrial pays an annual dividend of $1.00 per share and has a dividend yield of 2.5%. Finning International pays out 37.5% of its earnings in the form of a dividend. Global Industrial pays out 54.1% 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. Global Industrial has increased its dividend for 3 consecutive years. Global Industrial is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Global Industrial beats Finning International on 9 of the 13 factors compared between the two stocks.

About Finning International

Finning International Inc. sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally. The company offers articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, drills, electric rope shovels, excavators, hydraulic mining shovels, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, skid steer and compact track loaders, track loaders, underground-hard rock, wheel loaders, and wheel tractor-scrapers, as well as mobile and stationary generator sets. It also provides blades, buckets – skid steer loaders, forks, hammers, augers, brooms, material handling, mulchers, grapples, couplers loaders, backhoes, buckets telehandlers, trenchers, stump grinders, multi-processors, buckets loaders, electric power controls, rakes, couplers excavators, bale grabs, cold planers, compactors, flail mowers, buckets mining shovels, pulverizers, nursery products, buckets compact wheels loaders, buckets backhoe rears, bale spears, tillers, shears, buckets backhoe fronts, tilt rotate systems, adapters, rippers, saws, snow products, and buckets excavators. In addition, it offers power systems for electric power generation, oil and gas, industrial, and marine power systems; and rents generators, power distribution products, and air compressors. Further, the company provides aftercare, fluid analysis, finning managed, financing, warranty, customer training solutions, as well as rebuilds, rentals, and repair services. It serves agriculture, construction, forestry, electric power generation, industrial and waste, industrial OEMs, marine, mining, oil and gas, paving, and quarrying industries. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was incorporated in 1933 and is headquartered in Surrey, Canada.

About Global Industrial

Global Industrial Company operates as an industrial distributor of various industrial and maintenance, repair, and operation (MRO) products in North America. It offers storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, foodservice and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers industrial and MRO products under the Global, GlobalIndustrial.com, Nexel, Paramount, Interion, and Absocold trademarks. It serves businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, signature campaigns, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.