Reviewing Daimler Truck (OTCMKTS:DTRUY) & Donaldson (NYSE:DCI)

Donaldson (NYSE:DCI) and Daimler Truck (OTCMKTS:DTRUY) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider & Institutional Ownership

82.8% of Donaldson shares are held by institutional investors. 2.2% of Donaldson shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Donaldson pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. Daimler Truck pays an annual dividend of $0.79 per share and has a dividend yield of 2.9%. Donaldson pays out 34.4% of its earnings in the form of a dividend. Donaldson has raised its dividend for 38 consecutive years.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Donaldson and Daimler Truck, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Donaldson	0	2	3	0	2.60
Daimler Truck	0	2	5	1	2.88

Donaldson presently has a consensus target price of $97.83, indicating a potential downside of 0.90%. Given Donaldson’s higher probable upside, research analysts plainly believe Donaldson is more favorable than Daimler Truck.

Valuation and Earnings

This table compares Donaldson and Daimler Truck”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Donaldson	$3.69 billion	3.10	$367.00 million	$3.72	26.54
Daimler Truck	N/A	N/A	N/A	N/A	N/A

Donaldson has higher revenue and earnings than Daimler Truck.

Profitability

This table compares Donaldson and Daimler Truck’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Donaldson	11.52%	29.17%	14.98%
Daimler Truck	N/A	N/A	N/A

Summary

Donaldson beats Daimler Truck on 8 of the 13 factors compared between the two stocks.

About Donaldson

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, and OEM dealer networks. The company's Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes. This segment sells its products to various distributors, OEMs, and end-users. Its Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment, that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.

About Daimler Truck

Daimler Truck Holding AG manufactures and sells commercial trucks. The company was founded in 2021 and is based in Stuttgart, Germany.