Contrasting Miller Industries (NYSE:MLR) and Daimler Truck (OTCMKTS:DTRUY)

Daimler Truck (OTCMKTS:DTRUY) and Miller Industries (NYSE:MLR) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

Daimler Truck has a beta of 0.12, indicating that its stock price is 88% less volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

Profitability

This table compares Daimler Truck and Miller Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daimler Truck	5.87%	4.79%	1.46%
Miller Industries	1.86%	3.41%	2.40%

Dividends

Daimler Truck pays an annual dividend of $0.79 per share and has a dividend yield of 3.5%. Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Daimler Truck pays out 158.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Miller Industries pays out 67.7% of its earnings in the form of a dividend. Miller Industries has raised its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Daimler Truck and Miller Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daimler Truck	$51.50 billion	0.67	$2.23 billion	$0.50	45.18
Miller Industries	$790.27 million	0.75	$23.01 million	$1.24	42.12

Daimler Truck has higher revenue and earnings than Miller Industries. Miller Industries is trading at a lower price-to-earnings ratio than Daimler Truck, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings for Daimler Truck and Miller Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daimler Truck	0	2	5	2	3.00
Miller Industries	0	2	1	0	2.33

Miller Industries has a consensus target price of $54.00, indicating a potential upside of 3.39%. Given Miller Industries’ higher possible upside, analysts clearly believe Miller Industries is more favorable than Daimler Truck.

Institutional and Insider Ownership

79.2% of Miller Industries shares are held by institutional investors. 4.5% of Miller Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

About Daimler Truck

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

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.