Head-To-Head Review: Titan Machinery (TITN) and CNH Global (CNH)

Titan Machinery (NASDAQ: TITN) and CNH Global (NYSE:CNH) are both retail/wholesale companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation and Earnings

This table compares Titan Machinery and CNH Global’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Titan Machinery $1.21 billion 0.41 -$14.17 million ($0.78) -28.86
CNH Global N/A N/A N/A $5.40 N/A

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

Analyst Recommendations

This is a summary of recent ratings and price targets for Titan Machinery and CNH Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Titan Machinery 0 1 2 0 2.67
CNH Global 0 0 0 0 N/A

Titan Machinery presently has a consensus price target of $20.67, suggesting a potential downside of 8.19%.

Profitability

This table compares Titan Machinery and CNH Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Titan Machinery -1.44% -2.29% -0.92%
CNH Global N/A N/A N/A

Insider & Institutional Ownership

76.4% of Titan Machinery shares are owned by institutional investors. 16.1% of Titan Machinery shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Titan Machinery Company Profile

Titan Machinery Inc. owns and operates a network of service agricultural and construction equipment stores in the United States and Europe. The Company engages in four principal business activities: new and used equipment sales; parts sales; repair and maintenance services, and equipment rental and other activities. It has three business segments: Agriculture, Construction and International. Its agricultural equipment includes machinery and attachments for large-scale farming, and home and garden purposes. Its construction equipment includes heavy construction and light industrial machinery for commercial and residential construction, road and highway construction, and mining operations. It sells new agricultural and construction equipment. It provides in-store and on-site repair and maintenance services. It also rents equipment and provides ancillary services, such as equipment transportation, global positioning system signal subscriptions, and finance and insurance products.

CNH Global Company Profile

CNH Global N.V. (CNH) is a global, full-line company in both the agricultural and construction equipment industries. The Company organizes its operations into three business segments: agricultural equipment, construction equipment and financial services. The Company markets its products globally through its two brand families, Case and New Holland. Case IH (along with Steyr in Europe) and New Holland make up its agricultural brand family. Case and New Holland Construction (along with Kobelco in North America) make up its construction equipment brand family. During the year ended December 31, 2012, the Company was manufacturing its products in 37 facilities globally and distributing its products in approximately 170 countries through a network of approximately 11,500 dealers and distributors.

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