WABCO (NYSE:WBC) versus Oshkosh (OSK) Head to Head Review

WABCO (NYSE: WBC) and Oshkosh (NYSE:OSK) are both mid-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for WABCO and Oshkosh, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 4 11 0 2.73
Oshkosh 0 3 9 0 2.75

WABCO currently has a consensus price target of $159.36, suggesting a potential upside of 9.07%. Oshkosh has a consensus price target of $94.58, suggesting a potential upside of 12.27%. Given Oshkosh’s stronger consensus rating and higher possible upside, analysts clearly believe Oshkosh is more favorable than WABCO.

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. WABCO does not pay a dividend. Oshkosh pays out 22.6% of its earnings in the form of a dividend. Oshkosh has increased its dividend for 3 consecutive years.

Volatility and Risk

WABCO has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.

Profitability

This table compares WABCO and Oshkosh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WABCO 9.75% 38.93% 10.53%
Oshkosh 4.48% 16.64% 7.28%

Insider and Institutional Ownership

95.6% of WABCO shares are held by institutional investors. Comparatively, 94.3% of Oshkosh shares are held by institutional investors. 0.8% of WABCO shares are held by company insiders. Comparatively, 1.6% of Oshkosh shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WABCO $2.81 billion 2.79 $223.00 million $5.54 26.37
Oshkosh $6.83 billion 0.92 $285.60 million $4.24 19.87

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

Summary

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

WABCO Company Profile

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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.

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