CNH Industrial (NYSE: CNHI) and Oshkosh (NYSE:OSK) are both industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.2%. CNH Industrial pays out 54.5% of its earnings in the form of a dividend. Oshkosh pays out 23.1% 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. Oshkosh has increased its dividend for 3 consecutive years. Oshkosh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
CNH Industrial has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Insider and Institutional Ownership
17.5% of CNH Industrial shares are held by institutional investors. Comparatively, 92.4% of Oshkosh shares are held by institutional investors. 1.6% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings & Valuation
This table compares CNH Industrial and Oshkosh’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNH Industrial||$27.36 billion||0.67||$295.00 million||$0.22||61.14|
|Oshkosh||$6.83 billion||0.86||$285.60 million||$4.16||18.97|
CNH Industrial has higher revenue and earnings than Oshkosh. Oshkosh is trading at a lower price-to-earnings ratio than CNH Industrial, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for CNH Industrial and Oshkosh, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CNH Industrial presently has a consensus target price of $14.69, suggesting a potential upside of 9.20%. Oshkosh has a consensus target price of $94.58, suggesting a potential upside of 19.83%. Given Oshkosh’s stronger consensus rating and higher probable upside, analysts plainly believe Oshkosh is more favorable than CNH Industrial.
This table compares CNH Industrial and Oshkosh’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Oshkosh beats CNH Industrial on 14 of the 17 factors compared between the two stocks.
About CNH Industrial
CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.
Oshkosh Corporation is a manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire and emergency. The company’s brands include Oshkosh, JLG, Pierce, McNeilus, IMT, Frontline, Jerr-Dan, CON-E-CO and London. The Company operates through four segments: Access equipment, Defense, Fire & emergency and Commercial. The Access equipment segment provides aerial work platforms and telehandlers to position workers and materials at elevated heights. The Defense segment provides supply parts and services and wheeled vehicles. The Fire & Emergency segment manufactures and markets commercial and custom fire vehicles, simulators and emergency vehicles. The Commercial segment manufactures, markets and distributes concrete mixers, portable concrete batch plants, and vehicle and vehicle body components.
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