Concentric AB (publ) (OTC:CCNTF) vs. Tennant (NYSE:TNC) Financial Survey

Tennant (NYSE:TNC) and Concentric AB (publ) (OTC:CCNTF) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Earnings & Valuation

This table compares Tennant and Concentric AB (publ)”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tennant	$1.24 billion	1.42	$109.50 million	$6.02	15.48
Concentric AB (publ)	N/A	N/A	N/A	$4.36	5.10

Tennant has higher revenue and earnings than Concentric AB (publ). Concentric AB (publ) is trading at a lower price-to-earnings ratio than Tennant, indicating that it is currently the more affordable of the two stocks.

Dividends

Tennant pays an annual dividend of $1.12 per share and has a dividend yield of 1.2%. Concentric AB (publ) pays an annual dividend of $1.75 per share and has a dividend yield of 7.9%. Tennant pays out 18.6% of its earnings in the form of a dividend. Concentric AB (publ) pays out 40.1% 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. Tennant has increased its dividend for 52 consecutive years.

Profitability

This table compares Tennant and Concentric AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tennant	8.76%	22.23%	11.71%
Concentric AB (publ)	N/A	N/A	N/A

Institutional & Insider Ownership

93.3% of Tennant shares are owned by institutional investors. Comparatively, 55.4% of Concentric AB (publ) shares are owned by institutional investors. 2.6% of Tennant shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Tennant and Concentric AB (publ), as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tennant	0	0	2	0	3.00
Concentric AB (publ)	0	0	0	0	N/A

Tennant presently has a consensus target price of $106.00, suggesting a potential upside of 13.78%. Given Tennant’s higher probable upside, research analysts clearly believe Tennant is more favorable than Concentric AB (publ).

Summary

Tennant beats Concentric AB (publ) on 12 of the 13 factors compared between the two stocks.

About Tennant

Tennant Company, together with its subsidiaries, designs, manufactures, and markets floor cleaning equipment in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers a suite of products, including floor maintenance and cleaning equipment, detergent-free and other sustainable cleaning technologies, aftermarket parts and consumables, equipment maintenance and repair services, and asset management solutions. It provides business solutions, such as financing, rental, and leasing programs, as well as machine-to-machine asset management solutions. The company offers its products under the Tennant, Nobles, Alfa Uma Empresa Tennant, IPC, Gaomei, and Rongen brands, as well as private-label brands. Its products are used in retail establishments and distribution centers; factories and warehouses; and public venues, such as arenas and stadiums, office buildings, schools and universities, hospitals and clinics, and other environments. The company markets its products to contract cleaners and businesses through direct sales and service organizations, as well as through a network of authorized distributors. Tennant Company was founded in 1870 and is headquartered in Eden Prairie, Minnesota.

About Concentric AB (publ)

Concentric AB (publ), together with its subsidiaries, designs, develops, manufactures, and distributes hydraulic and engine solutions in Sweden and internationally. The company operates through two segments, Engines and Hydraulics. It provides engine products, including lubricant, coolant, and fuel transfer pumps for diesel engines to OEMs and diesel engine manufacturers. The company's engine products include e-coolant and e-oil pumps, mini-hybrid electric cooling systems, e-fuel and coolant pumps, oil and fuel transfer pumps, alfdex oil mist separators, and licos and dual cone clutches, as well as thermal management solutions for electric drivetrains and diesel engines, as well as data centers and energy storage. The company's hydraulic products comprise internal gear pumps, DC power packs, transmission pumps, low-noise pumps, electrohydraulic steering, controlled power packs, main hydraulic pumps, and high-power density units. Its products are used in trucks and buses, industrial applications, construction, and agricultural markets. The company was founded in 1921 and is based in Stockholm, Sweden.