Contrasting Terex (TEX) & The Competition

Terex (NYSE:TEX) is one of 436 public companies in the “Machinery” industry, but how does it contrast to its rivals? We will compare Terex to related companies based on the strength of its institutional ownership, risk, analyst recommendations, dividends, valuation, profitability and earnings.

Institutional & Insider Ownership

92.9% of Terex shares are held by institutional investors. Comparatively, 51.7% of shares of all “Machinery” companies are held by institutional investors. 1.6% of Terex shares are held by insiders. Comparatively, 14.2% of shares of all “Machinery” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Terex and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terex	0	5	5	2	2.75
Terex Competitors	4196	14696	18192	805	2.41

Terex currently has a consensus target price of $74.73, indicating a potential upside of 29.73%. As a group, “Machinery” companies have a potential upside of 31.32%. Given Terex’s rivals higher probable upside, analysts plainly believe Terex has less favorable growth aspects than its rivals.

Volatility and Risk

Terex has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500. Comparatively, Terex’s rivals have a beta of 5.11, indicating that their average stock price is 411% more volatile than the S&P 500.

Profitability

This table compares Terex and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terex	2.64%	11.79%	5.36%
Terex Competitors	-1,044.42%	-14.99%	0.57%

Dividends

Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. Terex pays out 34.3% of its earnings in the form of a dividend. As a group, “Machinery” companies pay a dividend yield of 2.8% and pay out 24.6% of their earnings in the form of a dividend. Terex has raised its dividend for 5 consecutive years. Terex lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Terex and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Terex	$5.42 billion	$221.00 million	29.09
Terex Competitors	$4.66 billion	$364.05 million	3.91

Terex has higher revenue, but lower earnings than its rivals. Terex is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Terex beats its rivals on 8 of the 15 factors compared.

About Terex

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.