Analyzing Twin Disc (NASDAQ:TWIN) and THT Heat Transfer Technology (OTCMKTS:THTI)

Twin Disc (NASDAQ:TWIN) and THT Heat Transfer Technology (OTCMKTS:THTI) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Twin Disc and THT Heat Transfer Technology, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	0	1	2	0	2.67
THT Heat Transfer Technology	0	0	0	0	0.00

Twin Disc currently has a consensus target price of $30.00, indicating a potential upside of 24.90%. Given Twin Disc’s stronger consensus rating and higher possible upside, equities analysts clearly believe Twin Disc is more favorable than THT Heat Transfer Technology.

Earnings & Valuation

This table compares Twin Disc and THT Heat Transfer Technology”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$340.74 million	1.02	-$1.89 million	$1.84	13.05
THT Heat Transfer Technology	N/A	N/A	N/A	N/A	N/A

THT Heat Transfer Technology has lower revenue, but higher earnings than Twin Disc.

Profitability

This table compares Twin Disc and THT Heat Transfer Technology’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	7.32%	2.77%	1.29%
THT Heat Transfer Technology	N/A	N/A	N/A

Insider & Institutional Ownership

65.2% of Twin Disc shares are held by institutional investors. 22.1% of Twin Disc shares are held by company insiders. Comparatively, 22.4% of THT Heat Transfer Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Twin Disc beats THT Heat Transfer Technology on 8 of the 9 factors compared between the two stocks.

About Twin Disc

Twin Disc, Incorporated engages in the design, manufacture, and sale of marine and heavy duty off-highway power transmission equipment in the United States, the Netherlands, China, Australia, Italy, and internationally. The company operates in two segments, Manufacturing and Distribution. Its principal products include marine transmissions, azimuth drives, surface drives, propellers, and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, and controls systems. The company also provides third-party manufactured products. It sells its products through a direct sales force and distributor network to customers primarily in the pleasure craft, commercial marine, patrol, and military marine markets, as well as in the energy and natural resources, government, agriculture, recycling, construction, oil and gas, and industrial markets. The company was incorporated in 1918 and is headquartered in Milwaukee, Wisconsin.

About THT Heat Transfer Technology

THT Heat Transfer Technology, Inc. engages in the manufacture and trading of plate heat exchangers and related products. It offers plate heat exchangers, heat exchanger units, air-cooled heat exchangers, and shell-and-tube heat exchangers. The company was founded on August 7, 2006 and is headquartered in Siping, China.