Head to Head Contrast: Greenbrier Companies (NYSE:GBX) versus Middleby (NASDAQ:MIDD)

Middleby (NASDAQ:MIDD) and Greenbrier Companies (NYSE:GBX) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, institutional ownership and valuation.

Risk and Volatility

Middleby has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Valuation & Earnings

This table compares Middleby and Greenbrier Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Middleby	$3.20 billion	1.50	-$277.73 million	($9.26)	-11.44
Greenbrier Companies	$2.63 billion	0.45	$204.10 million	$3.37	11.43

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

Profitability

This table compares Middleby and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Middleby	-13.22%	17.44%	7.66%
Greenbrier Companies	4.07%	6.49%	2.55%

Insider and Institutional Ownership

98.5% of Middleby shares are owned by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are owned by institutional investors. 9.7% of Middleby shares are owned by company insiders. Comparatively, 1.7% of Greenbrier Companies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Middleby and Greenbrier Companies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Middleby	2	1	6	0	2.44
Greenbrier Companies	1	3	0	0	1.75

Middleby currently has a consensus target price of $159.25, suggesting a potential upside of 50.31%. Greenbrier Companies has a consensus target price of $45.00, suggesting a potential upside of 16.87%. Given Middleby’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Middleby is more favorable than Greenbrier Companies.

Summary

Middleby beats Greenbrier Companies on 9 of the 14 factors compared between the two stocks.

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.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.