Comparing Trinity Industries (NYSE:TRN) & Hyster-Yale (NYSE:HY)

Hyster-Yale (NYSE:HY) and Trinity Industries (NYSE:TRN) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Earnings and Valuation

This table compares Hyster-Yale and Trinity Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hyster-Yale	$3.77 billion	0.16	-$60.10 million	($6.56)	-5.09
Trinity Industries	$2.16 billion	1.04	$253.10 million	$4.15	6.78

Trinity Industries has lower revenue, but higher earnings than Hyster-Yale. Hyster-Yale is trading at a lower price-to-earnings ratio than Trinity Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Hyster-Yale pays an annual dividend of $1.46 per share and has a dividend yield of 4.4%. Trinity Industries pays an annual dividend of $1.24 per share and has a dividend yield of 4.4%. Hyster-Yale pays out -22.3% of its earnings in the form of a dividend. Trinity Industries pays out 29.9% 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. Hyster-Yale has increased its dividend for 1 consecutive years and Trinity Industries has increased its dividend for 16 consecutive years. Trinity Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

46.5% of Hyster-Yale shares are held by institutional investors. Comparatively, 86.6% of Trinity Industries shares are held by institutional investors. 37.8% of Hyster-Yale shares are held by insiders. Comparatively, 2.1% of Trinity Industries shares are held 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 Hyster-Yale and Trinity Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hyster-Yale	-3.33%	-21.03%	-4.87%
Trinity Industries	16.62%	18.51%	2.56%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Hyster-Yale and Trinity Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hyster-Yale	1	1	2	0	2.25
Trinity Industries	0	2	1	0	2.33

Hyster-Yale presently has a consensus target price of $47.50, indicating a potential upside of 42.24%. Trinity Industries has a consensus target price of $35.00, indicating a potential upside of 24.42%. Given Hyster-Yale’s higher probable upside, equities analysts plainly believe Hyster-Yale is more favorable than Trinity Industries.

Volatility & Risk

Hyster-Yale has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500. Comparatively, Trinity Industries has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500.

Summary

Trinity Industries beats Hyster-Yale on 11 of the 17 factors compared between the two stocks.

About Hyster-Yale

Hyster-Yale, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships. The company also sells aftermarket parts under the Hyster and Yale, as well as UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks. In addition, it produces and distributes attachments, forks, and lift tables under the Bolzoni, Auramo, and Meyer brand names; and designs and produces products in the port equipment and rough terrain forklift markets. Further, the company designs, manufactures, and sells hydrogen fuel-cell stacks and engines. It serves light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food distributors, container handling companies, and U.S. and non-U.S. governmental agencies. The company was formerly known as Hyster-Yale Materials Handling, Inc. and changed its name to Hyster-Yale, Inc. in June 2024. Hyster-Yale, Inc. was incorporated in 1991 and is headquartered in Cleveland, Ohio.

About Trinity Industries

Trinity Industries, Inc. provides rail transportation products and services under the TrinityRail name in North America. It operates in two segments, Railcar Leasing and Management Services Group, and Rail Products Group. The Railcar Leasing and Management Services Group segment leases freight and tank railcars; originates and manages railcar leases for third-party investors; and provides fleet maintenance and management services. As of December 31, 2023, it had a fleet of 109,295 railcars. This segment serves industrial shipper and railroad companies operating in agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. The Rail Products Group segment manufactures freight and tank railcars for transporting various liquids, gases, and dry cargo; and offers railcar maintenance and modification services. This segment serves railroads, leasing companies, and industrial shippers of products in the agriculture, construction and metals, consumer products, energy, and refined products and chemicals markets. It sells or leases products and services through its own sales personnel and independent sales representatives. The company was incorporated in 1933 and is headquartered in Dallas, Texas.