Analyzing Tennant (NYSE:TNC) & Mitsubishi Heavy Industries (OTCMKTS:MHVYF)

Tennant (NYSE:TNC) and Mitsubishi Heavy Industries (OTCMKTS:MHVYF) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Tennant and Mitsubishi Heavy Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	3.64%	16.05%	8.19%
Mitsubishi Heavy Industries	5.21%	10.91%	4.07%

Earnings & Valuation

This table compares Tennant and Mitsubishi Heavy Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.20 billion	1.20	$43.80 million	$2.34	34.36
Mitsubishi Heavy Industries	$33.01 billion	3.03	$1.62 billion	$0.56	53.03

Mitsubishi Heavy Industries has higher revenue and earnings than Tennant. Tennant is trading at a lower price-to-earnings ratio than Mitsubishi Heavy Industries, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

93.3% of Tennant shares are owned by institutional investors. 3.5% of Tennant shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Tennant has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500. Comparatively, Mitsubishi Heavy Industries has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Tennant and Mitsubishi Heavy Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	1	2	1	0	2.00
Mitsubishi Heavy Industries	0	2	0	0	2.00

Tennant presently has a consensus price target of $91.00, indicating a potential upside of 13.19%. Given Tennant’s higher possible upside, analysts clearly believe Tennant is more favorable than Mitsubishi Heavy Industries.

Summary

Tennant beats Mitsubishi Heavy Industries on 8 of the 13 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. manufactures and sells heavy machinery worldwide. It operates through Energy Systems; Plants & Infrastructure Systems; Logistics, Thermal & Drive Systems; and Aircraft, Defense & Space segments. The company offers thermal, renewable energy, nuclear power generation, and engine power plants; oil and gas production plants; lithium-ion battery products and fuel cells; civil aircrafts and engines, aviation equipment, and maintenance, repair, and overhaul of aircrafts; and launch vehicles and services, rocket engines, reaction control systems, space stations, rocket launchers, rocket engine combustion test facilities, and electronic parts. It also provides passenger and commercial ships, LNG and LPG carriers, special purpose vessels, and IT services and systems; marine machineries, boilers, turbines, engines, and structures; and intelligent transport systems products and solutions, such as electronic toll collection system, road user charging system, highway traffic management system, EV management system, and development system. In addition, the company offers organic solvent exhaust gas treatment system, waste-to-energy system, sludge treatment system, air quality control system, and bio-treatment system; turbochargers, car air-conditioning and refrigeration systems, rubber and tire machinery, and testing equipment; forklift trucks; and printing, paper converting, and metals, and food & packaging machinery, pumps, compressors & mechanical turbines, hydraulic components. Further, it provides gas holders, vibration control systems, water pipes, tunnel excavation machinery, and cybersecurity solutions for industrial control systems; special vehicles, naval ship and maritime systems, defense aircrafts, helicopters, defense aeroengines, and guided weapon systems; CO2 capture plants; and after-sales services. The company was founded in 1884 and is headquartered in Tokyo, Japan.