Contrasting Navistar International Corporation (NAV) and The Competition

Navistar International Corporation (NYSE: NAV) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its competitors? We will compare Navistar International Corporation to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Navistar International Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navistar International Corporation -1.73% N/A -2.03%
Navistar International Corporation Competitors 4.04% 13.45% 3.91%

Institutional and Insider Ownership

82.5% of Navistar International Corporation shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 21.8% of Navistar International Corporation shares are owned by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

Navistar International Corporation has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500. Comparatively, Navistar International Corporation’s competitors have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Valuation and Earnings

This table compares Navistar International Corporation and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Navistar International Corporation $8.11 billion -$97.00 million -23.31
Navistar International Corporation Competitors $6.06 billion $48.37 million 165.91

Navistar International Corporation has higher revenue, but lower earnings than its competitors. Navistar International Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and price targets for Navistar International Corporation and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navistar International Corporation 1 7 4 0 2.25
Navistar International Corporation Competitors 171 876 953 17 2.40

Navistar International Corporation presently has a consensus target price of $36.40, suggesting a potential downside of 6.47%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.37%. Given Navistar International Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe Navistar International Corporation has less favorable growth aspects than its competitors.

Summary

Navistar International Corporation competitors beat Navistar International Corporation on 8 of the 12 factors compared.

About Navistar International Corporation

Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.

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