PACCAR (PCAR) versus The Competition Critical Comparison

PACCAR (NASDAQ: PCAR) 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 PACCAR to similar businesses based on the strength of its analyst recommendations, valuation, risk, earnings, institutional ownership, dividends and profitability.

Valuation and Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
PACCAR $17.03 billion $521.70 million 18.44
PACCAR Competitors $6.06 billion $48.37 million 119.05

PACCAR has higher revenue and earnings than its rivals. PACCAR 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.

Dividends

PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. PACCAR pays out 25.6% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. PACCAR is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
PACCAR 7.61% 18.77% 6.33%
PACCAR Competitors 4.06% 13.41% 3.96%

Risk & Volatility

PACCAR has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, PACCAR’s rivals have a beta of 1.42, suggesting that their average stock price is 42% more volatile than the S&P 500.

Institutional & Insider Ownership

62.4% of PACCAR shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.6% of PACCAR shares are owned by company insiders. Comparatively, 8.9% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings for PACCAR and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 14 7 0 2.27
PACCAR Competitors 171 892 968 17 2.41

PACCAR presently has a consensus price target of $74.67, suggesting a potential upside of 3.83%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.04%. Given PACCAR’s rivals stronger consensus rating and higher probable upside, analysts clearly believe PACCAR has less favorable growth aspects than its rivals.

Summary

PACCAR rivals beat PACCAR on 8 of the 15 factors compared.

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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