Critical Review: Toromont Industries (TMTNF) and Its Peers

Toromont Industries (OTCMKTS:TMTNF – Get Free Report) is one of 158 publicly-traded companies in the “Trading Companies & Distributors” industry, but how does it weigh in compared to its peers? We will compare Toromont Industries to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Toromont Industries and its peers, as reported by MarketBeat.

As a group, “Trading Companies & Distributors” companies have a potential upside of 9.85%. Given Toromont Industries’ peers higher possible upside, analysts plainly believe Toromont Industries has less favorable growth aspects than its peers.

Profitability

This table compares Toromont Industries and its peers’ net margins, return on equity and return on assets.

Dividends

Toromont Industries pays an annual dividend of $1.59 per share and has a dividend yield of 1.1%. Toromont Industries pays out 48.5% of its earnings in the form of a dividend. As a group, “Trading Companies & Distributors” companies pay a dividend yield of 2.9% and pay out 36.6% of their earnings in the form of a dividend. Toromont Industries lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are held by institutional investors. 17.1% of shares of all “Trading Companies & Distributors” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Toromont Industries and its peers top-line revenue, earnings per share (EPS) and valuation.

Toromont Industries’ peers have higher revenue and earnings than Toromont Industries. Toromont Industries is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Toromont Industries peers beat Toromont Industries on 8 of the 14 factors compared.

About Toromont Industries

(Get Free Report)

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.