Critical Review: TOMI Environmental Solutions (NASDAQ:TOMZ) versus Titan International (NYSE:TWI)

TOMI Environmental Solutions (NASDAQ:TOMZ) and Titan International (NYSE:TWI) are both small-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, institutional ownership, valuation, dividends and analyst recommendations.

Insider and Institutional Ownership

4.8% of TOMI Environmental Solutions shares are held by institutional investors. Comparatively, 80.4% of Titan International shares are held by institutional investors. 20.2% of TOMI Environmental Solutions shares are held by insiders. Comparatively, 6.1% of Titan International shares are held by 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.

Earnings and Valuation

This table compares TOMI Environmental Solutions and Titan International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOMI Environmental Solutions	$5.64 million	2.31	-$3.75 million	($0.50)	-3.20
Titan International	$1.83 billion	0.25	-$63.49 million	($1.21)	-5.87

TOMI Environmental Solutions has higher earnings, but lower revenue than Titan International. Titan International is trading at a lower price-to-earnings ratio than TOMI Environmental Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for TOMI Environmental Solutions and Titan International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOMI Environmental Solutions	1	0	1	0	2.00
Titan International	1	0	1	0	2.00

TOMI Environmental Solutions presently has a consensus price target of $7.00, suggesting a potential upside of 337.50%. Titan International has a consensus price target of $13.00, suggesting a potential upside of 83.10%. Given TOMI Environmental Solutions’ higher probable upside, equities analysts plainly believe TOMI Environmental Solutions is more favorable than Titan International.

Volatility and Risk

TOMI Environmental Solutions has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Titan International has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Profitability

This table compares TOMI Environmental Solutions and Titan International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOMI Environmental Solutions	-49.77%	-326.81%	-44.61%
Titan International	-4.11%	-1.56%	-0.48%

Summary

TOMI Environmental Solutions beats Titan International on 7 of the 12 factors compared between the two stocks.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.

About Titan International

Titan International, Inc., together with its subsidiaries, manufactures and sells wheels, tires, and undercarriage systems and components for off-highway vehicles in the United States and internationally. The company operates in Agricultural, Earthmoving/Construction, and Consumer segments. It offers wheels, tires, and undercarriage systems and components for various agricultural equipment, including tractors, combines, skidders, plows, planters, and irrigation equipment. The company also offers wheels, tires, and undercarriage systems and components for off-the-road earthmoving, mining, military, construction, and forestry equipment, including skid steers, aerial lifts, cranes, graders and levelers, scrapers, self-propelled shovel loaders, articulated dump trucks, load transporters, haul trucks, backhoe loaders, crawler tractors, lattice cranes, shovels, and hydraulic excavators. In addition, it provides bias and light truck tires; and products for ATVs, rock climbers, and turf applications, as well as specialty products and train brakes. It sells its products directly to original equipment manufacturers, as well as to the aftermarket through independent distributors, equipment dealers, and its distribution centers. Titan International, Inc. was founded in 1890 and is headquartered in West Chicago, Illinois.