Analyzing Terex (NYSE:TEX) and Perma-Pipe International (NASDAQ:PPIH)
by Danessa Lincoln · The Markets DailyTerex (NYSE:TEX – Get Free Report) and Perma-Pipe International (NASDAQ:PPIH – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.
Analyst Recommendations
This is a breakdown of current recommendations for Terex and Perma-Pipe International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Terex | 0 | 5 | 5 | 2 | 2.75 |
| Perma-Pipe International | 0 | 1 | 1 | 0 | 2.50 |
Terex presently has a consensus price target of $77.91, suggesting a potential upside of 34.60%. Perma-Pipe International has a consensus price target of $37.00, suggesting a potential upside of 14.80%. Given Terex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Terex is more favorable than Perma-Pipe International.
Risk and Volatility
Terex has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Perma-Pipe International has a beta of 0.63, indicating that its share price is 37% less volatile than the S&P 500.
Profitability
This table compares Terex and Perma-Pipe International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Terex | 2.23% | 12.24% | 5.16% |
| Perma-Pipe International | 6.89% | 21.58% | 8.79% |
Valuation and Earnings
This table compares Terex and Perma-Pipe International”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Terex | $5.42 billion | 1.22 | $221.00 million | $1.96 | 29.53 |
| Perma-Pipe International | $210.93 million | 1.25 | $17.03 million | $1.90 | 16.96 |
Terex has higher revenue and earnings than Perma-Pipe International. Perma-Pipe International is trading at a lower price-to-earnings ratio than Terex, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
92.9% of Terex shares are held by institutional investors. Comparatively, 28.4% of Perma-Pipe International shares are held by institutional investors. 1.6% of Terex shares are held by company insiders. Comparatively, 1.1% of Perma-Pipe International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
Terex beats Perma-Pipe International on 11 of the 15 factors compared between the two stocks.
About Terex
Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.
About Perma-Pipe International
Perma-Pipe International Holdings, Inc., together with its subsidiaries, engineers, designs, manufactures, and sells specialty piping and leak detection systems. It offers insulated and jacketed district heating and cooling piping systems for energy distribution from central energy plants to various locations; and primary and secondary containment piping systems for transporting chemicals, hazardous fluids, and petroleum products, as well as engages in the coating and insulation of oil and gas gathering and transmission pipelines. The company also offers liquid and powder based anti-corrosion coatings for external and internal surfaces of steel pipe, including shapes like bends, reducers, tees, and other spools/fittings that is used in pipelines for the transportation of oil and gas products and potable water. It has operations in the United States, Canada, the Middle East, North Africa, Europe, India, and internationally. The company was formerly known as MFRI, Inc. and changed its name to Perma-Pipe International Holdings, Inc. in March 2017. Perma-Pipe International Holdings, Inc. was incorporated in 1993 and is headquartered in Spring, Texas.