Critical Contrast: Finning International (FINGF) and Its Peers

Finning International (OTCMKTS:FINGF) is one of 159 public companies in the “Trading Companies & Distributors” industry, but how does it compare to its peers? We will compare Finning International to related businesses based on the strength of its risk, dividends, institutional ownership, valuation, profitability, analyst recommendations and earnings.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Finning International and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Finning International	0	0	5	0	3.00
Finning International Competitors	1408	4864	6674	227	2.43

As a group, “Trading Companies & Distributors” companies have a potential upside of 5.43%. Given Finning International’s peers higher possible upside, analysts plainly believe Finning International has less favorable growth aspects than its peers.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Finning International	$7.58 billion	$470.93 million	46.64
Finning International Competitors	$6.42 billion	$364.19 million	24.92

Finning International has higher revenue and earnings than its peers. Finning International 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.

Dividends

Finning International pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Finning International pays out 65.8% 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 36.5% of their earnings in the form of a dividend. Finning International lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Insider and Institutional Ownership

50.9% of shares of all “Trading Companies & Distributors” companies are owned by institutional investors. 17.1% of shares of all “Trading Companies & Distributors” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Finning International and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Finning International	4.93%	20.17%	7.06%
Finning International Competitors	2.87%	-33.62%	3.56%

Summary

Finning International beats its peers on 8 of the 14 factors compared.

Finning International Company Profile

Finning International Inc. sells, services, and rents heavy equipment, engines, and related products in Canada, Chile, Bolivia, the United Kingdom, Argentina, Ireland, and internationally. The company offers articulated trucks, asphalt pavers, backhoe loaders, cold planers, compactors, dozers, drills, electric rope shovels, excavators, hydraulic mining shovels, material handlers, motor graders, off-highway trucks, pipelayers, road reclaimers, skid steer and compact track loaders, track loaders, underground-hard rock, wheel loaders, and wheel tractor-scrapers, as well as mobile and stationary generator sets. It also provides blades, buckets – skid steer loaders, forks, hammers, augers, brooms, material handling, mulchers, grapples, couplers loaders, backhoes, buckets telehandlers, trenchers, stump grinders, multi-processors, buckets loaders, electric power controls, rakes, couplers excavators, bale grabs, cold planers, compactors, flail mowers, buckets mining shovels, pulverizers, nursery products, buckets compact wheels loaders, buckets backhoe rears, bale spears, tillers, shears, buckets backhoe fronts, tilt rotate systems, adapters, rippers, saws, snow products, and buckets excavators. In addition, it offers power systems for electric power generation, oil and gas, industrial, and marine power systems; and rents generators, power distribution products, and air compressors. Further, the company provides aftercare, fluid analysis, finning managed, financing, warranty, customer training solutions, as well as rebuilds, rentals, and repair services. It serves agriculture, construction, forestry, electric power generation, industrial and waste, industrial OEMs, marine, mining, oil and gas, paving, and quarrying industries. The company was formerly known as Finning Ltd. and changed its name to Finning International Inc. in April 1997. Finning International Inc. was incorporated in 1933 and is headquartered in Surrey, Canada.