Federal Signal (FSS) Competitors

Toro (NYSE:TTC) and Federal Signal (NYSE:FSS) are both mid-cap consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, community ranking, dividends, risk, institutional ownership, valuation, profitability, media sentiment and analyst recommendations.

Does the media refer more to TTC or FSS?

In the previous week, Toro had 3 more articles in the media than Federal Signal. MarketBeat recorded 4 mentions for Toro and 1 mentions for Federal Signal. Toro's average media sentiment score of 1.21 beat Federal Signal's score of 0.71 indicating that Toro is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Toro	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Federal Signal	1 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better valuation and earnings, TTC or FSS?

Toro has higher revenue and earnings than Federal Signal. Toro is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$4.58B	1.84	$418.90M	$4.01	20.81
Federal Signal	$1.72B	3.44	$157.40M	$3.45	28.08

Do institutionals and insiders believe in TTC or FSS?

87.9% of Toro shares are held by institutional investors. Comparatively, 92.7% of Federal Signal shares are held by institutional investors. 1.6% of Toro shares are held by insiders. Comparatively, 3.1% of Federal Signal shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Does the MarketBeat Community favor TTC or FSS?

Toro received 158 more outperform votes than Federal Signal when rated by MarketBeat users. Likewise, 69.29% of users gave Toro an outperform vote while only 58.41% of users gave Federal Signal an outperform vote.

Company	Underperform	Outperform
Toro	Outperform Votes 467 69.29%	Underperform Votes 207 30.71%
Federal Signal	Outperform Votes 309 58.41%	Underperform Votes 220 41.59%

Do analysts prefer TTC or FSS?

Toro presently has a consensus target price of $93.75, suggesting a potential upside of 12.35%. Federal Signal has a consensus target price of $100.00, suggesting a potential upside of 3.22%. Given Toro's higher possible upside, equities research analysts clearly believe Toro is more favorable than Federal Signal.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0 Sell rating(s)	3 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.25
Federal Signal	0 Sell rating(s)	1 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.67

Which has more volatility & risk, TTC or FSS?

Toro has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Federal Signal has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Is TTC or FSS more profitable?

Federal Signal has a net margin of 11.57% compared to Toro's net margin of 9.14%. Toro's return on equity of 27.25% beat Federal Signal's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Toro	9.14%	27.25%	11.63%
Federal Signal	11.57%	18.46%	11.84%

Is TTC or FSS a better dividend stock?

Toro pays an annual dividend of $1.52 per share and has a dividend yield of 1.8%. Federal Signal pays an annual dividend of $0.48 per share and has a dividend yield of 0.5%. Toro pays out 37.9% of its earnings in the form of a dividend. Federal Signal pays out 13.9% 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. Toro has increased its dividend for 21 consecutive years. Toro is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Toro beats Federal Signal on 11 of the 21 factors compared between the two stocks.