Contrasting Oshkosh Corporation (OSK) and Spartan Motors (SPAR)

Oshkosh Corporation (NYSE: OSK) and Spartan Motors (NASDAQ:SPAR) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitabiliy.

Valuation and Earnings

This table compares Oshkosh Corporation and Spartan Motors’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Oshkosh Corporation $6.33 billion 0.80 $531.00 million $2.79 24.28
Spartan Motors $624.13 million 0.48 $18.41 million $0.21 40.48

Oshkosh Corporation has higher revenue and earnings than Spartan Motors. Oshkosh Corporation is trading at a lower price-to-earnings ratio than Spartan Motors, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

95.4% of Oshkosh Corporation shares are held by institutional investors. Comparatively, 66.3% of Spartan Motors shares are held by institutional investors. 2.0% of Oshkosh Corporation shares are held by insiders. Comparatively, 3.7% of Spartan Motors shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Oshkosh Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.2%. Spartan Motors pays an annual dividend of $0.10 per share and has a dividend yield of 1.2%. Oshkosh Corporation pays out 30.1% of its earnings in the form of a dividend. Spartan Motors pays out 47.6% 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 Corporation has raised its dividend for 2 consecutive years. Oshkosh Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current recommendations for Oshkosh Corporation and Spartan Motors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh Corporation 0 7 6 0 2.46
Spartan Motors 0 0 3 0 3.00

Oshkosh Corporation currently has a consensus price target of $69.70, suggesting a potential upside of 2.91%. Spartan Motors has a consensus price target of $11.00, suggesting a potential upside of 29.41%. Given Spartan Motors’ stronger consensus rating and higher possible upside, analysts clearly believe Spartan Motors is more favorable than Oshkosh Corporation.

Volatility & Risk

Oshkosh Corporation has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Spartan Motors has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Profitability

This table compares Oshkosh Corporation and Spartan Motors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh Corporation 3.30% 12.12% 5.12%
Spartan Motors 1.12% 8.19% 4.67%

Summary

Oshkosh Corporation beats Spartan Motors on 13 of the 17 factors compared between the two stocks.

Oshkosh Corporation Company Profile

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.

Spartan Motors Company Profile

Spartan Motors, Inc. is an engineer and manufacturer in the heavy-duty, custom vehicles marketplace. The Company operates through three segments: Emergency Response Vehicles, Delivery and Service Vehicles, and Specialty Chassis and Vehicles. The Company’s Emergency Response Vehicles segment engineers and manufactures emergency response chassis, emergency response bodies and aerial equipment. The Delivery and Service Vehicles segment manufactures delivery and service vehicles through the Company’s subsidiary, Utilimaster Corporation (Utilimaster). The Company’s Specialty Chassis and Vehicles segment consists of the operations of Spartan Motors Chassis, Inc. (Spartan Chassis) that engineer and manufacture motor home chassis, defense vehicles and other specialty chassis, and distribute related aftermarket parts and assemblies. The Company markets its products under brands, such as Spartan ERV, Aeromaster, Trademaster, Metromaster and Utilivan.

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