Critical Comparison: Titan International (NYSE:TWI) & Ag Growth International (OTCMKTS:AGGZF)

Titan International (NYSE:TWI) and Ag Growth International (OTCMKTS:AGGZF) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, risk, profitability, valuation, dividends, institutional ownership and analyst recommendations.

Profitability

This table compares Titan International and Ag Growth International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan International	1.55%	12.23%	4.30%
Ag Growth International	N/A	N/A	N/A

Insider and Institutional Ownership

80.4% of Titan International shares are owned by institutional investors. Comparatively, 56.8% of Ag Growth International shares are owned by institutional investors. 32.5% of Titan International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Titan International and Ag Growth International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan International	0	0	0	0	N/A
Ag Growth International	0	0	0	0	N/A

Earnings & Valuation

This table compares Titan International and Ag Growth International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan International	$1.81 billion	0.33	$78.76 million	$0.89	9.12
Ag Growth International	N/A	N/A	N/A	$1.80	22.62

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

Dividends

Titan International pays an annual dividend of $0.02 per share and has a dividend yield of 0.2%. Ag Growth International pays an annual dividend of $1.40 per share and has a dividend yield of 3.4%. Titan International pays out 2.2% of its earnings in the form of a dividend. Ag Growth International pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Titan International beats Ag Growth International on 7 of the 10 factors compared between the two stocks.

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.

About Ag Growth International

Ag Growth International Inc., together with its subsidiaries, manufactures and sells equipment for the agriculture industry in Canada, the United States, and internationally. It operates through Farm and Commercial segments. The company offers grain, bolted, hopper, and smooth wall bins; temporary storage; unloads and sweeps systems; water tanks; secondary containment systems; fuel tanks; and storage accessories, as well as mixed flow dryers; fans and heaters; aeration products; vents and exhausters; and stirring systems. It also provides portable handling equipment, such as augers, conveyors, grain vacs, post pounders, seed treaters, and related accessories; permanent handling equipment, such as bucket elevators, chain and belt conveyors, distributors, feed handling, screw feeders and conveyors, and spouts and connectors. In addition, the company offers towers, catwalks, and ladders, as well as all-steel buildings; batch blenders, bulk scales, declining weight blenders, vertical blenders, micro-dosing systems, mixers, and milling equipment; and controllers, hazard monitoring, and monitoring and automation equipment. Its products are used in port facilities, inland grain terminals, corporate farms, fertilizer distribution sites, ethanol production, oilseed crushing, commercial feed mills, rice mills, and flour mills. The company serves farmers, agribusinesses, grain handlers, regional cooperatives, contractors, food and animal feed manufacturers, and fertilizer blenders and distributors. Ag Growth International Inc. was founded in 1996 and is based in Winnipeg, Canada.