Critical Analysis: TIC Solutions (NYSE:TIC) vs. Thomson Reuters (NASDAQ:TRI)

TIC Solutions (NYSE:TIC) and Thomson Reuters (NASDAQ:TRI) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares TIC Solutions and Thomson Reuters’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TIC Solutions	-5.64%	-2.30%	-1.11%
Thomson Reuters	21.22%	15.82%	10.27%

Analyst Recommendations

This is a summary of recent ratings and price targets for TIC Solutions and Thomson Reuters, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TIC Solutions	1	2	3	0	2.33
Thomson Reuters	0	6	10	1	2.71

TIC Solutions currently has a consensus target price of $12.00, suggesting a potential upside of 35.82%. Thomson Reuters has a consensus target price of $131.57, suggesting a potential upside of 29.56%. Given TIC Solutions’ higher probable upside, equities research analysts plainly believe TIC Solutions is more favorable than Thomson Reuters.

Valuation & Earnings

This table compares TIC Solutions and Thomson Reuters”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TIC Solutions	$2.05 billion	0.94	-$87.12 million	($0.58)	-15.23
Thomson Reuters	$7.48 billion	5.89	$1.50 billion	$3.76	27.01

Thomson Reuters has higher revenue and earnings than TIC Solutions. TIC Solutions is trading at a lower price-to-earnings ratio than Thomson Reuters, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

TIC Solutions has a beta of 3, suggesting that its share price is 200% more volatile than the S&P 500. Comparatively, Thomson Reuters has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500.

Institutional and Insider Ownership

17.3% of Thomson Reuters shares are owned by institutional investors. 11.4% of TIC Solutions 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.

Summary

Thomson Reuters beats TIC Solutions on 12 of the 15 factors compared between the two stocks.

About TIC Solutions

Acuren Corporation provides critical asset integrity services in North America. Its activities include various nondestructive testing (NDT) solutions, such as radiography, ultrasonic testing, magnetic particle inspection, penetrant testing, and visual inspection. Its NDT activities include inspection and evaluation of industrial equipment through various technology-enabled methods to ensure asset integrity, avoid accidents, and comply with regulatory requirements without destroying the asset or component. The company also provides market rope access technician solutions, including inspection and testing, as well as insulation, coatings and blasting, welding, pipe fitting, hoisting and rigging, and electrical services. In addition, its TIC service includes support from consulting engineers with in-lab destructive testing capabilities. The company provides support failure investigation, material selection, corrosion engineering, welding engineering, fracture mechanics, destructive testing, and chemical analysis. It serves a range of industrial markets, primarily chemical, pipeline, refinery, power generation, oilsands, automotive, aerospace, mining, manufacturing, renewable energy, and pulp and paper. The company was founded in 1991 and is headquartered in Tomball, Texas.

About Thomson Reuters

Thomson Reuters Corporation provides business information services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It operates in five segments: Legal Professionals, Corporates, Tax & Accounting Professionals, Reuters News, and Global Print. The Legal Professionals segment offers research and workflow products focusing on legal research and integrated legal workflow solutions that combine content, tools, and analytics to law firms and governments. The Corporates segment provides a suite of content-enabled technology solutions for legal, tax, regulatory, compliance, and IT professionals. The Tax & Accounting Professionals segment offers research and workflow products focusing on tax offerings and automating tax workflows to tax, accounting, and audit professionals in accounting firms. The Reuters News segment provides business, financial, and international news to media organizations, professional, and news consumers through news agency and industry events. The Global Print segment offers legal and tax information primarily in print format to legal and tax professionals, governments, law schools, and corporations. The company was formerly known as The Thomson Corporation and changed its name to Thomson Reuters Corporation in April 2008. The company was founded in 1851 and is headquartered in Toronto, Canada. Thomson Reuters Corporation is a subsidiary of The Woodbridge Company Limited.