Head-To-Head Survey: CNH Industrial (CNHI) vs. The Competition

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

Risk & Volatility

CNH Industrial has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500. Comparatively, CNH Industrial’s peers have a beta of 1.43, indicating that their average share price is 43% more volatile than the S&P 500.

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. CNH Industrial pays out 37.5% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.2% and pay out 35.8% of their earnings in the form of a dividend. CNH Industrial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent ratings for CNH Industrial and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial 0 2 6 0 2.75
CNH Industrial Competitors 175 903 983 17 2.41

CNH Industrial currently has a consensus target price of $14.23, indicating a potential upside of 0.09%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 4.14%. Given CNH Industrial’s peers higher possible upside, analysts plainly believe CNH Industrial has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares CNH Industrial and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CNH Industrial $24.87 billion -$252.00 million 44.44
CNH Industrial Competitors $6.09 billion $58.14 million 161.86

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

Insider and Institutional Ownership

18.2% of CNH Industrial shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 8.4% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares CNH Industrial and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial 1.66% 14.63% 1.41%
CNH Industrial Competitors 3.81% 12.45% 3.75%

Summary

CNH Industrial peers beat CNH Industrial on 11 of the 15 factors compared.

About CNH Industrial

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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