Reviewing Navistar International (NYSE:NAV) and Its Rivals

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

Analyst Ratings

This is a breakdown of recent ratings for Navistar International and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navistar International 1 7 5 0 2.31
Navistar International Competitors 171 885 963 17 2.41

Navistar International currently has a consensus price target of $37.64, suggesting a potential downside of 5.93%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.39%. Given Navistar International’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Navistar International has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Navistar International and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Navistar International $8.11 billion -$97.00 million -23.96
Navistar International Competitors $6.06 billion $48.37 million 113.46

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

Volatility & Risk

Navistar International has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500. Comparatively, Navistar International’s rivals have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Institutional and Insider Ownership

83.2% of Navistar International shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 21.8% of Navistar International shares are owned by insiders. Comparatively, 8.9% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Navistar International -1.73% N/A -2.03%
Navistar International Competitors 4.06% 13.41% 3.96%

Summary

Navistar International rivals beat Navistar International on 8 of the 12 factors compared.

About Navistar International

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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