Twin Disc (NASDAQ:TWIN) and Ingersoll-Rand (NYSE:IR) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Volatility & Risk

Twin Disc has a beta of 1.88, suggesting that its share price is 88% more volatile than the S&P 500. Comparatively, Ingersoll-Rand has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

57.3% of Twin Disc shares are held by institutional investors. 22.9% of Twin Disc shares are held by company insiders. Comparatively, 1.7% of Ingersoll-Rand shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Twin Disc and Ingersoll-Rand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Twin Disc -2.77% -1.80% -0.93%
Ingersoll-Rand 6.49% 8.86% 3.47%

Valuation and Earnings

This table compares Twin Disc and Ingersoll-Rand’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Twin Disc $302.66 million 0.38 $10.67 million $0.83 10.29
Ingersoll-Rand $2.45 billion 1.88 $159.10 million $0.76 29.49

Ingersoll-Rand has higher revenue and earnings than Twin Disc. Twin Disc is trading at a lower price-to-earnings ratio than Ingersoll-Rand, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current recommendations for Twin Disc and Ingersoll-Rand, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Twin Disc 0 1 0 0 2.00
Ingersoll-Rand 0 7 9 0 2.56

Twin Disc presently has a consensus price target of $14.00, suggesting a potential upside of 63.93%. Ingersoll-Rand has a consensus price target of $118.00, suggesting a potential upside of 426.55%. Given Ingersoll-Rand’s stronger consensus rating and higher probable upside, analysts clearly believe Ingersoll-Rand is more favorable than Twin Disc.

Summary

Ingersoll-Rand beats Twin Disc on 10 of the 14 factors compared between the two stocks.

Twin Disc Company Profile

Twin Disc, Incorporated designs, manufactures, and sells marine and heavy duty off-highway power transmission equipment worldwide. The company operates through two segments, Manufacturing and Distribution. Its products include marine transmissions, surface drives, propellers, and boat management systems; and power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also offers non-twin disc manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the commercial, pleasure craft, and military marine markets, as well as in the energy and natural resources, government, and industrial markets. Twin Disc, Incorporated was founded in 1918 and is headquartered in Racine, Wisconsin.

Ingersoll-Rand Company Profile

Ingersoll-Rand Plc designs, manufactures, sells, and services industrial and commercial products. The company operates through Climate and Industrial segments. The Climate segment offers air conditioners, exchangers, and handlers; airside and terminal devices; auxiliary power units; chillers; coils and condensers; gensets; furnaces; heat pumps; home automation; humidifiers; hybrid and non-diesel transport refrigeration, and ice energy storage solutions; indoor air quality; industrial refrigeration; motor replacements; refrigerant reclamation; thermostats/controls; transport heater products; and water source heat pumps. It also provides building management; bus, rail, and multi-pipe hvac; control; container, cryogenic, diesel-powered, industrial, rail, self-powered truck, trailer, and vehicle-powered truck refrigeration; ductless; geothermal; package heating and cooling; temporary heating and cooling; and unitary systems, as well as aftermarket and OEM parts and supplies. In addition, this segment offers energy and facility management, installation and performance contracting, repair and maintenance, and rental services. The Industrial segment provides air treatment and separation, engine starting, ergonomic material handling, fluid handling, precision fastening, and mobile golf information systems; and airends, blowers, compressors, dryers, filters, golf vehicles, hoists, fluid power components, power tools, pumps, rough terrain vehicles, utility and low-speed vehicles, and winches, as well as aftermarket controls, parts, accessories, and consumables. It also provides aftermarket and OEM parts and supplies. The company markets and sells its products under the American Standard, ARO, Club Car, Nexia, Thermo King, and Trane brands through sales offices, distributors, and dealers in the United States; and through sales and service companies with a supporting chain of distributors worldwide. Ingersoll-Rand Plc was founded in 1871 and is headquartered in Swords, Ireland.

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