Reviewing Oshkosh Corporation (OSK) & CNH Industrial NV (CNHI)

Oshkosh Corporation (NYSE: OSK) and CNH Industrial NV (NASDAQ:CNHI) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Dividends

Oshkosh Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. CNH Industrial NV pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Oshkosh Corporation pays out 22.3% of its earnings in the form of a dividend. CNH Industrial NV pays out 37.5% 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. CNH Industrial NV has raised its dividend for 2 consecutive years. Oshkosh Corporation is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and target prices for Oshkosh Corporation and CNH Industrial NV, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh Corporation 0 4 10 0 2.71
CNH Industrial NV 1 3 4 0 2.38

Oshkosh Corporation presently has a consensus target price of $92.75, suggesting a potential upside of 8.47%. CNH Industrial NV has a consensus target price of $11.27, suggesting a potential downside of 12.39%. Given Oshkosh Corporation’s stronger consensus rating and higher possible upside, research analysts plainly believe Oshkosh Corporation is more favorable than CNH Industrial NV.

Institutional & Insider Ownership

94.4% of Oshkosh Corporation shares are owned by institutional investors. 2.0% of Oshkosh Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Oshkosh Corporation has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, CNH Industrial NV has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Valuation & Earnings

This table compares Oshkosh Corporation and CNH Industrial NV’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Oshkosh Corporation $6.83 billion 0.94 $285.60 million $3.76 22.74
CNH Industrial NV N/A N/A N/A $0.32 40.19

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

Profitability

This table compares Oshkosh Corporation and CNH Industrial NV’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh Corporation 4.18% 15.14% 6.54%
CNH Industrial NV 0.54% 4.78% 0.30%

Summary

Oshkosh Corporation beats CNH Industrial NV on 13 of the 14 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.

CNH Industrial NV Company Profile

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.

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