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How Does Toro Compare to Its Peers and ETFs?

Gabriel Kane

Toro Reported Solid Revenue and Income Growth in Fiscal 4Q15

(Continued from Prior Part)

ETFs that invest in Toro

The PowerShares Water Resource Portfolio (PHO) invests 4.2% of its holdings in Toro. The ETF tracks a modified liquidity-weighted index of US-listed companies that create products to conserve and purify water.

The First Trust Industrials/Producer Durables AlphaDEX ETF (FXR) invests 1.7% of its holdings in Toro. The ETF tracks a quant-driven, tiered, equal-weighted index that selects US industrial stocks likely to outperform the sector.

The PowerShares DWA Industrials Momentum Portfolio (PRN) invests 1.5% of its holdings in Toro. The ETF tracks an index of US industrial firms selected and weighted by price momentum.

The PowerShares Global Water Portfolio (PIO) invests 1.4% of its holdings in Toro. The ETF tracks a modified liquidity-weighted index of global companies that create products to conserve and purify water for homes, businesses, and industries.

Comparing Toro to its ETFs

Now let’s look at Toro compared to its ETFs:

  • The year-to-date price movements of Toro (TTC), PHO, FXR, PRN, and PIO are 17.7%, -14.0%, -8.4%, -2.3%, and -5.9%, respectively.

  • The PE (price-to-earnings) ratios of Toro, PHO, FXR, PRN, and PIO are 22.4x, 47.0x, 14.1x, 25.2x, and 24.6x, respectively.

  • The PBV (price-to-book value) ratios of Toro, PHO, FXR, PRN, and PIO are 8.8x, 2.7x, 2.0x, 6.3x, and 2.4x, respectively.

According to the above findings, these ETFs are ahead of Toro based on PE. However, Toro has outperformed its ETFs based on price movement and PBV.

Toro and its peers

In this article, we’ll compare Toro to its industry peers:

  • The PE ratios of Toro, Deere & Company (DE), and Stanley Black & Decker (SWK) are 22.4x, 13.6x, and 19.3x, respectively, as of December 3, 2015.

  • The PBV ratios of Toro, Deere & Company, and Stanley Black & Decker are 8.8x, 3.8x, and 2.8x, respectively.

As a result, Toro has outperformed its peers based on PE and PBV.

Browse this series on Market Realist: