Contrasting PACCAR (NASDAQ:PCAR) and Curtiss Motorcycles (OTCMKTS:CMOT)

Curtiss Motorcycles (OTCMKTS:CMOT) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, dividends, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

64.9% of PACCAR shares are held by institutional investors. 2.0% of PACCAR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Curtiss Motorcycles and PACCAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Curtiss Motorcycles	0	0	0	0	0.00
PACCAR	0	10	5	1	2.44

PACCAR has a consensus target price of $122.00, indicating a potential upside of 8.35%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts plainly believe PACCAR is more favorable than Curtiss Motorcycles.

Profitability

This table compares Curtiss Motorcycles and PACCAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Curtiss Motorcycles	N/A	N/A	N/A
PACCAR	8.91%	12.81%	5.62%

Volatility and Risk

Curtiss Motorcycles has a beta of -9.29, suggesting that its share price is 1,029% less volatile than the S&P 500. Comparatively, PACCAR has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Earnings and Valuation

This table compares Curtiss Motorcycles and PACCAR”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Curtiss Motorcycles	N/A	N/A	N/A	N/A	N/A
PACCAR	$27.78 billion	2.13	$2.38 billion	$4.70	23.96

PACCAR has higher revenue and earnings than Curtiss Motorcycles.

Summary

PACCAR beats Curtiss Motorcycles on 11 of the 11 factors compared between the two stocks.

About Curtiss Motorcycles

Curtiss Motorcycles Company, Inc. engages in the design, manufacture, assembly, and sale of handcrafted street motorcycles for high net worth customers in the United States. The company offers the X132 Hellcat Speedster, as well as preproduction models, such as the P51 Combat Fighter and the Wraith Tandem Lusso motorcycles. It also provides motorcycle related products, including various wearing apparel and other related accessories displaying the Confederate name through its Website. The company was formerly known as Confederate Motors, Inc. and changed its name to Curtiss Motorcycles Company, Inc. in January 2018. Curtiss Motorcycles Company, Inc. was founded in 1991 and is based in Birmingham, Alabama.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.