Titan Machinery (NASDAQ:TITN) versus Alta Equipment Group (NYSE:ALTG) Critical Contrast

Titan Machinery (NASDAQ:TITN) and Alta Equipment Group (NYSE:ALTG) are both small-cap industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Volatility and Risk

Titan Machinery has a beta of 1.41, suggesting that its share price is 41% more volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.77, suggesting that its share price is 77% more volatile than the S&P 500.

Institutional & Insider Ownership

78.4% of Titan Machinery shares are held by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are held by institutional investors. 10.8% of Titan Machinery shares are held by company insiders. Comparatively, 20.5% of Alta Equipment Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Titan Machinery and Alta Equipment Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan Machinery	-2.46%	-9.17%	-3.20%
Alta Equipment Group	-4.42%	-3,253.61%	-5.92%

Valuation and Earnings

This table compares Titan Machinery and Alta Equipment Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan Machinery	$2.31 billion	0.26	-$54.17 million	($2.49)	-10.21
Alta Equipment Group	$1.82 billion	0.12	-$80.30 million	($2.57)	-2.51

Titan Machinery has higher revenue and earnings than Alta Equipment Group. Titan Machinery is trading at a lower price-to-earnings ratio than Alta Equipment Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Titan Machinery and Alta Equipment Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan Machinery	1	0	1	0	2.00
Alta Equipment Group	1	2	2	0	2.20

Titan Machinery presently has a consensus target price of $29.00, indicating a potential upside of 14.08%. Alta Equipment Group has a consensus target price of $9.83, indicating a potential upside of 52.34%. Given Alta Equipment Group’s stronger consensus rating and higher possible upside, analysts plainly believe Alta Equipment Group is more favorable than Titan Machinery.

Summary

Titan Machinery beats Alta Equipment Group on 8 of the 14 factors compared between the two stocks.

About Titan Machinery

Titan Machinery Inc. owns and operates a network of full service agricultural and construction equipment stores in the United States, Europe, and Australia. It operates through four segments: Agriculture, Construction, Europe, and Australia. The company sells new and used equipment, including agricultural and construction equipment manufactured under the CNH Industrial family of brands, as well as equipment from various other manufacturers. Its agricultural equipment includes machinery and attachments for use in the production of food, fiber, feed grain, feed stock, and renewable energy; and home and garden applications, as well as maintenance of commercial, residential, and government properties. The company’s construction equipment comprises heavy construction machinery, light industrial machinery for commercial and residential construction, and road and highway construction machinery. It also sells maintenance and replacement parts. In addition, the company offers repair and maintenance services that include warranty repairs, off-site and on-site repair services, scheduling off-season maintenance services, and notifying customers of periodic service requirements; and training programs to customers. Further, it rents equipment; and provides ancillary equipment support services, such as equipment transportation, global positioning system signal subscriptions and other precision farming products, farm data management products, and CNH Industrial finance and insurance products. The company operates in Colorado, Idaho, Kansas, Missouri, Washington, Iowa, Minnesota, Montana, Nebraska, North Dakota, South Dakota, Wisconsin, and Wyoming, the United States; Bulgaria, Germany, Romania, and Ukraine, Europe; and New South Wales, South Australia, and Victoria, Australia. Titan Machinery Inc. was founded in 1980 and is headquartered in West Fargo, North Dakota.

About Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.