Head to Head Analysis: A.M. Castle & Co. (OTCMKTS:CTAM) and PACCAR (NASDAQ:PCAR)

A.M. Castle & Co. (OTCMKTS:CTAM) and PACCAR (NASDAQ:PCAR) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, dividends, profitability, valuation, institutional ownership and earnings.

Profitability

This table compares A.M. Castle & Co. and PACCAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
A.M. Castle & Co.	N/A	N/A	N/A
PACCAR	9.00%	12.73%	5.69%

Insider & Institutional Ownership

64.9% of PACCAR shares are owned by institutional investors. 2.0% of PACCAR shares are owned by 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.

Analyst Recommendations

This is a summary of current ratings and target prices for A.M. Castle & Co. and PACCAR, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
A.M. Castle & Co.	0	0	0	0	0.00
PACCAR	0	11	3	0	2.21

PACCAR has a consensus target price of $131.70, suggesting a potential downside of 0.63%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts clearly believe PACCAR is more favorable than A.M. Castle & Co..

Earnings and Valuation

This table compares A.M. Castle & Co. and PACCAR”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
A.M. Castle & Co.	N/A	N/A	N/A	N/A	N/A
PACCAR	$28.44 billion	2.45	$2.38 billion	$4.76	27.84

PACCAR has higher revenue and earnings than A.M. Castle & Co..

Summary

PACCAR beats A.M. Castle & Co. on 9 of the 9 factors compared between the two stocks.

About A.M. Castle & Co.

A.M. Castle & Co. engages in the distribution of specialty metals and supply chain services. The firm serves the producer equipment, commercial and military aircraft, heavy equipment, industrial goods, and construction equipment sectors. Its products include alloy and stainless steels, nickel alloys, aluminum, titanium, and carbon. The company was founded in 1890 and is headquartered in Oak Brook, IL.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.