Localiza Rent a Car (OTCMKTS:LZRFY) versus Titan Machinery (NASDAQ:TITN) Financial Analysis

Titan Machinery (NASDAQ:TITN) and Localiza Rent a Car (OTCMKTS:LZRFY) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Titan Machinery and Localiza Rent a Car, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Titan Machinery	1	1	0	0	1.50
Localiza Rent a Car	1	0	0	0	1.00

Titan Machinery presently has a consensus target price of $17.00, indicating a potential upside of 0.06%. Given Titan Machinery’s stronger consensus rating and higher probable upside, research analysts plainly believe Titan Machinery is more favorable than Localiza Rent a Car.

Institutional and Insider Ownership

78.4% of Titan Machinery shares are owned by institutional investors. Comparatively, 0.1% of Localiza Rent a Car shares are owned by institutional investors. 10.8% of Titan Machinery shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Titan Machinery and Localiza Rent a Car”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Titan Machinery	$2.43 billion	0.16	-$54.17 million	($2.35)	-7.23
Localiza Rent a Car	N/A	N/A	N/A	$0.39	18.74

Localiza Rent a Car has lower revenue, but higher earnings than Titan Machinery. Titan Machinery is trading at a lower price-to-earnings ratio than Localiza Rent a Car, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Titan Machinery and Localiza Rent a Car’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Titan Machinery	-2.28%	-8.44%	-2.91%
Localiza Rent a Car	N/A	N/A	N/A

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 Localiza Rent a Car

Localiza Rent a Car S.A. engages in car and fleet rental business. The company is also involved in granting franchises; sale of decommissioned and used cars; provision of sundry automotive, and travel and tourism services; and managing claims for insurance companies, as well as provision of tracking and telemetry services. It operates car rental agencies in Brazil, Argentina, Colombia, Ecuador, and Paraguay. The company serves individuals and legal entities. Localiza Rent a Car S.A. was founded in 1973 and is headquartered in Belo Horizonte, Brazil.