CNH Industrial NV (CNHI) and Wabco Holdings (WBC) Financial Comparison

CNH Industrial NV (NASDAQ: CNHI) and Wabco Holdings (NYSE:WBC) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for CNH Industrial NV and Wabco Holdings, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial NV 1 4 2 0 2.14
Wabco Holdings 1 3 9 0 2.62

CNH Industrial NV currently has a consensus target price of $10.97, suggesting a potential downside of 8.44%. Wabco Holdings has a consensus target price of $141.36, suggesting a potential downside of 4.25%. Given Wabco Holdings’ stronger consensus rating and higher probable upside, analysts plainly believe Wabco Holdings is more favorable than CNH Industrial NV.

Earnings and Valuation

This table compares CNH Industrial NV and Wabco Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CNH Industrial NV $24.18 billion 0.68 $2.44 billion N/A N/A
Wabco Holdings $2.93 billion 2.70 $479.40 million $6.00 24.61

CNH Industrial NV has higher revenue and earnings than Wabco Holdings.

Insider and Institutional Ownership

97.5% of Wabco Holdings shares are held by institutional investors. 0.8% of Wabco Holdings shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares CNH Industrial NV and Wabco Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial NV 3.17% 21.59% 1.91%
Wabco Holdings 11.23% 40.21% 10.86%

Summary

Wabco Holdings beats CNH Industrial NV on 9 of the 12 factors compared between the two stocks.

About CNH Industrial NV

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.

About Wabco Holdings

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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