Financial Comparison: ASV Holdings (ASV) versus PACCAR (PCAR)

ASV Holdings (NYSE: ASV) and PACCAR (NASDAQ:PCAR) are both heavy machinery & vehicles – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, dividends, risk, profitability and valuation.

Dividends

PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. ASV Holdings does not pay a dividend. PACCAR pays out 25.6% of its earnings in the form of a dividend.

Profitability

This table compares ASV Holdings and PACCAR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ASV Holdings 5.12% 11.75% 6.11%
PACCAR 7.61% 18.77% 6.33%

Earnings and Valuation

This table compares ASV Holdings and PACCAR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
ASV Holdings N/A N/A N/A $0.06 131.83
PACCAR $17.03 billion 1.43 $521.70 million $3.90 17.77

PACCAR has higher revenue and earnings than ASV Holdings. PACCAR is trading at a lower price-to-earnings ratio than ASV Holdings, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

63.0% of PACCAR shares are held by institutional investors. 2.6% of PACCAR 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.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for ASV Holdings and PACCAR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ASV Holdings 0 0 2 0 3.00
PACCAR 1 11 9 0 2.38

ASV Holdings currently has a consensus price target of $10.75, suggesting a potential upside of 35.90%. PACCAR has a consensus price target of $75.53, suggesting a potential upside of 8.96%. Given ASV Holdings’ stronger consensus rating and higher possible upside, research analysts plainly believe ASV Holdings is more favorable than PACCAR.

Summary

PACCAR beats ASV Holdings on 9 of the 12 factors compared between the two stocks.

About ASV Holdings

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

About PACCAR

PACCAR Inc (PACCAR) is a technology company. The Company’s segments include Truck, Parts and Financial Services. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. The Company’s trucks are marketed under the Kenworth, Peterbilt and DAF nameplates. It also manufactures engines, primarily for use in the Company’s trucks, at its facilities in Columbus, Mississippi; Eindhoven, the Netherlands, and Ponta Grossa, Brazil. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Financial Services segment includes finance and leasing products and services provided to customers and dealers. Its Other business includes the manufacturing and marketing of industrial winches. The Company operates in Australia and Brazil and sells trucks and parts to customers in Asia, Africa, Middle East and South America.

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