Analyzing Toromont Industries (TMTNF) and Its Rivals

Toromont Industries (OTCMKTS:TMTNF) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it compare to its competitors? We will compare Toromont Industries to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, analyst recommendations, valuation and earnings.

Insider & Institutional Ownership

50.8% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 16.7% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Toromont Industries pays an annual dividend of $1.62 per share and has a dividend yield of 1.1%. Toromont Industries pays out 74.0% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.5% of their earnings in the form of a dividend. Toromont Industries lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Toromont Industries and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toromont Industries	0	3	4	0	2.57
Toromont Industries Competitors	1400	4848	6642	222	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 9.45%. Given Toromont Industries’ competitors higher probable upside, analysts plainly believe Toromont Industries has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Toromont Industries and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Toromont Industries	$3.72 billion	$355.41 million	70.00
Toromont Industries Competitors	$6.36 billion	$355.21 million	24.20

Toromont Industries’ competitors have higher revenue, but lower earnings than Toromont Industries. Toromont Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Toromont Industries and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toromont Industries	9.25%	16.00%	9.69%
Toromont Industries Competitors	2.82%	-34.23%	3.61%

Toromont Industries Company Profile

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.