Ingersoll Rand (NYSE:IR) vs. Tennant (NYSE:TNC) Head-To-Head Review

Tennant (NYSE:TNC) and Ingersoll Rand (NYSE:IR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Earnings & Valuation

This table compares Tennant and Ingersoll Rand”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.20 billion	1.30	$43.80 million	$1.66	52.43
Ingersoll Rand	$7.65 billion	4.04	$581.40 million	$1.48	53.31

Ingersoll Rand has higher revenue and earnings than Tennant. Tennant is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Tennant has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for Tennant and Ingersoll Rand, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	0	3	1	0	2.25
Ingersoll Rand	0	5	4	0	2.44

Tennant currently has a consensus target price of $91.00, suggesting a potential upside of 4.55%. Ingersoll Rand has a consensus target price of $94.71, suggesting a potential upside of 20.04%. Given Ingersoll Rand’s stronger consensus rating and higher probable upside, analysts plainly believe Ingersoll Rand is more favorable than Tennant.

Profitability

This table compares Tennant and Ingersoll Rand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	2.55%	14.87%	7.17%
Ingersoll Rand	7.54%	12.79%	7.16%

Institutional & Insider Ownership

93.3% of Tennant shares are held by institutional investors. Comparatively, 95.3% of Ingersoll Rand shares are held by institutional investors. 3.5% of Tennant shares are held by insiders. Comparatively, 0.5% of Ingersoll Rand shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Tennant pays an annual dividend of $1.24 per share and has a dividend yield of 1.4%. Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Tennant pays out 74.7% of its earnings in the form of a dividend. Ingersoll Rand pays out 5.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Tennant has raised its dividend for 53 consecutive years. Tennant is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Ingersoll Rand beats Tennant on 11 of the 17 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.