Graham (NYSE:GHM) & Titan International (NYSE:TWI) Head-To-Head Analysis

Titan International (NYSE:TWI) and Graham (NYSE:GHM) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, dividends, analyst recommendations and earnings.

Institutional & Insider Ownership

80.4% of Titan International shares are held by institutional investors. Comparatively, 69.5% of Graham shares are held by institutional investors. 6.1% of Titan International shares are held by company insiders. Comparatively, 2.4% of Graham shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Titan International and Graham, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan International	1	0	1	0	2.00
Graham	0	3	2	0	2.40

Titan International currently has a consensus price target of $13.00, suggesting a potential upside of 86.17%. Graham has a consensus price target of $132.50, suggesting a potential upside of 51.97%. Given Titan International’s higher possible upside, equities research analysts plainly believe Titan International is more favorable than Graham.

Profitability

This table compares Titan International and Graham’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan International	-4.11%	-1.56%	-0.48%
Graham	4.53%	11.09%	5.17%

Risk and Volatility

Titan International has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Graham has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Earnings & Valuation

This table compares Titan International and Graham”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan International	$1.83 billion	0.25	-$63.49 million	($1.21)	-5.77
Graham	$245.29 million	4.17	$12.50 million	$1.04	83.83

Graham has lower revenue, but higher earnings than Titan International. Titan International is trading at a lower price-to-earnings ratio than Graham, indicating that it is currently the more affordable of the two stocks.

Summary

Graham beats Titan International on 9 of the 14 factors compared between the two stocks.

About Titan International

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. In addition, it provides bias and light truck tires; and products for ATVs, rock climbers, and turf applications, as well as specialty products and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and its distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in West Chicago, Illinois.

About Graham

Graham Corporation, together with its subsidiaries, designs and manufactures fluid, power, heat transfer, and vacuum equipment for chemical and petrochemical processing, defense, space, petroleum refining, cryogenic, energy, and other industries. It offers power plant systems, including ejectors and surface condensers; torpedo ejection, propulsion, and power systems, such as turbines, alternators, regulators, pumps, and blowers; and thermal management systems comprising pumps, blowers, and drive electronics for defense sector. The company also provides rocket propulsion systems consisting of turbopumps and fuel pumps; cooling systems, which include pumps, compressors, fans, and blowers; and life support systems that comprise fans, pumps, and blowers for space industry. In addition, it offers heat transfer and vacuum systems, including ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles; power generation systems, such as turbines, generators, compressors, and pumps; and thermal management systems comprising pumps, blowers, and electronics for energy sector. Further, the company offers heat transfer and vacuum systems consisting of ejectors, process and surface condensers, liquid ring pumps, heat exchangers, and nozzles for chemical and petrochemical processing industry. The company also services and sells spare parts for its equipment. It sells its products directly in the United States, the Middle East, Canada, Asia, South America, and internationally. Graham Corporation was founded in 1936 and is headquartered in Batavia, New York.