MSA Safety Incorporporated (NYSE:MSA) & Terex (NYSE:TEX) Head to Head Contrast

Terex (NYSE:TEX) and MSA Safety Incorporporated (NYSE:MSA) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Volatility and Risk

Terex has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, MSA Safety Incorporporated has a beta of 0.92, meaning that its share price is 8% less volatile than the S&P 500.

Profitability

This table compares Terex and MSA Safety Incorporporated’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Terex	2.64%	11.79%	5.36%
MSA Safety Incorporporated	16.13%	25.13%	13.24%

Institutional and Insider Ownership

92.9% of Terex shares are owned by institutional investors. Comparatively, 92.5% of MSA Safety Incorporporated shares are owned by institutional investors. 1.6% of Terex shares are owned by company insiders. Comparatively, 0.7% of MSA Safety Incorporporated shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Terex pays an annual dividend of $0.68 per share and has a dividend yield of 1.2%. MSA Safety Incorporporated pays an annual dividend of $2.16 per share and has a dividend yield of 1.2%. Terex pays out 34.3% of its earnings in the form of a dividend. MSA Safety Incorporporated pays out 26.9% 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. Terex has raised its dividend for 5 consecutive years and MSA Safety Incorporporated has raised its dividend for 56 consecutive years.

Earnings and Valuation

This table compares Terex and MSA Safety Incorporporated”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Terex	$5.42 billion	1.20	$221.00 million	$1.98	29.23
MSA Safety Incorporporated	$1.87 billion	3.83	$278.92 million	$8.04	23.14

MSA Safety Incorporporated has lower revenue, but higher earnings than Terex. MSA Safety Incorporporated is trading at a lower price-to-earnings ratio than Terex, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Terex and MSA Safety Incorporporated, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Terex	0	5	5	2	2.75
MSA Safety Incorporporated	0	4	2	0	2.33

Terex presently has a consensus target price of $74.73, suggesting a potential upside of 29.10%. MSA Safety Incorporporated has a consensus target price of $211.33, suggesting a potential upside of 13.57%. Given Terex’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Terex is more favorable than MSA Safety Incorporporated.

Summary

Terex beats MSA Safety Incorporporated on 10 of the 18 factors compared between the two stocks.

About Terex

Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Materials Processing (MP) and Aerial Work Platforms (AWP). The MP segment designs, manufactures, services, and markets materials processing and specialty equipment, includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, ProAll, ZenRobotics, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries. The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, and scissor lifts, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, transmission and distribution lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The company offers financing solutions to assist customers in the rental, leasing, and acquisition of its products. Terex Corporation was founded in 1933 and is based in Norwalk, Connecticut.

About MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.