Terex Corporation (NYSE: TEX) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its peers? We will compare Terex Corporation to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, valuation and dividends.

Dividends

Terex Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Terex Corporation pays out -37.2% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. Terex Corporation has raised its dividend for 3 consecutive years.

Earnings & Valuation

This table compares Terex Corporation and its peers top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Terex Corporation $4.44 billion -$176.10 million -52.12
Terex Corporation Competitors $6.06 billion $48.37 million 165.18

Terex Corporation’s peers have higher revenue and earnings than Terex Corporation. Terex Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

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

Net Margins Return on Equity Return on Assets
Terex Corporation -2.62% 7.01% 2.60%
Terex Corporation Competitors 4.06% 13.41% 3.96%

Institutional and Insider Ownership

89.2% of Terex Corporation shares are owned by institutional investors. Comparatively, 82.0% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.5% of Terex Corporation shares are owned by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned 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.

Risk & Volatility

Terex Corporation has a beta of 1.89, meaning that its stock price is 89% more volatile than the S&P 500. Comparatively, Terex Corporation’s peers have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Terex Corporation and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Terex Corporation 2 7 5 0 2.21
Terex Corporation Competitors 171 876 950 17 2.40

Terex Corporation currently has a consensus price target of $40.33, suggesting a potential downside of 10.01%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 9.48%. Given Terex Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Terex Corporation has less favorable growth aspects than its peers.

Summary

Terex Corporation peers beat Terex Corporation on 12 of the 15 factors compared.

About Terex Corporation

Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.

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