Financial Survey: Middleby (NASDAQ:MIDD) & Twin Disc (NASDAQ:TWIN)

Twin Disc (NASDAQ:TWIN) and Middleby (NASDAQ:MIDD) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Earnings and Valuation

This table compares Twin Disc and Middleby”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Twin Disc	$340.74 million	0.65	-$1.89 million	$0.02	765.00
Middleby	$3.88 billion	1.92	$428.43 million	($4.40)	-33.58

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

Volatility and Risk

Twin Disc has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500. Comparatively, Middleby has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500.

Insider and Institutional Ownership

65.3% of Twin Disc shares are held by institutional investors. Comparatively, 98.6% of Middleby shares are held by institutional investors. 22.1% of Twin Disc shares are held by insiders. Comparatively, 6.2% of Middleby shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Twin Disc and Middleby, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Twin Disc	1	1	1	0	2.00
Middleby	1	2	5	0	2.50

Twin Disc presently has a consensus price target of $12.00, indicating a potential downside of 21.57%. Middleby has a consensus price target of $161.33, indicating a potential upside of 9.19%. Given Middleby’s stronger consensus rating and higher probable upside, analysts plainly believe Middleby is more favorable than Twin Disc.

Profitability

This table compares Twin Disc and Middleby’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Twin Disc	0.10%	0.23%	0.10%
Middleby	-5.22%	14.66%	7.20%

Summary

Middleby beats Twin Disc on 10 of the 14 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 Middleby

The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing. The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and automated washing systems, auto-guided vehicles, food safety, food handling, freezing, and defrosting and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, mixers, rotisseries, and ventilation and outdoor cooking equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois.