Oshkosh (OSK) & Douglas Dynamics (PLOW) Critical Comparison

Oshkosh (NYSE: OSK) and Douglas Dynamics (NYSE:PLOW) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Valuation and Earnings

This table compares Oshkosh and Douglas Dynamics’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oshkosh $6.83 billion 1.00 $285.60 million $3.76 24.24
Douglas Dynamics $416.27 million 2.23 $39.00 million $1.35 30.48

Oshkosh has higher revenue and earnings than Douglas Dynamics. Oshkosh is trading at a lower price-to-earnings ratio than Douglas Dynamics, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Oshkosh has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, Douglas Dynamics has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Oshkosh and Douglas Dynamics, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh 0 3 10 0 2.77
Douglas Dynamics 0 0 2 0 3.00

Oshkosh currently has a consensus price target of $93.75, indicating a potential upside of 2.85%. Douglas Dynamics has a consensus price target of $42.00, indicating a potential upside of 2.07%. Given Oshkosh’s higher possible upside, equities analysts plainly believe Oshkosh is more favorable than Douglas Dynamics.

Insider and Institutional Ownership

94.0% of Oshkosh shares are held by institutional investors. Comparatively, 90.2% of Douglas Dynamics shares are held by institutional investors. 1.6% of Oshkosh shares are held by insiders. Comparatively, 3.2% of Douglas Dynamics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Oshkosh and Douglas Dynamics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh 4.18% 15.14% 6.54%
Douglas Dynamics 6.59% 13.98% 4.58%

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. Oshkosh pays out 25.5% of its earnings in the form of a dividend. Douglas Dynamics pays out 71.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Oshkosh has increased its dividend for 3 consecutive years and Douglas Dynamics has increased its dividend for 5 consecutive years. Douglas Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Oshkosh beats Douglas Dynamics on 10 of the 17 factors compared between the two stocks.

Oshkosh Company Profile

Oshkosh Corporation is a manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire and emergency. The company’s brands include Oshkosh, JLG, Pierce, McNeilus, IMT, Frontline, Jerr-Dan, CON-E-CO and London. The Company operates through four segments: Access equipment, Defense, Fire & emergency and Commercial. The Access equipment segment provides aerial work platforms and telehandlers to position workers and materials at elevated heights. The Defense segment provides supply parts and services and wheeled vehicles. The Fire & Emergency segment manufactures and markets commercial and custom fire vehicles, simulators and emergency vehicles. The Commercial segment manufactures, markets and distributes concrete mixers, portable concrete batch plants, and vehicle and vehicle body components.

Douglas Dynamics Company Profile

Douglas Dynamics, Inc. is a manufacturer and up-fitter of commercial vehicle attachments and equipment. The Company’s portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company operates through two segments: Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment includes snow and ice management attachments sold under the FISHER, WESTERN, HENDERSON and SNOWEX brands. The Work Truck Solutions segment includes the up-fit of attachments and storage solutions for commercial work vehicles under the DEJANA brand and its related sub-brands. In its Work Truck Attachments segment, the Company offers a product line of snowplows, and sand and salt spreaders for light and heavy duty trucks. Its Work Truck Solutions products consist of truck and vehicle up-fits.

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