Critical Comparison: Rush Enterprises (RUSHA) & Its Competitors

Rush Enterprises (NASDAQ: RUSHA) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it compare to its competitors? We will compare Rush Enterprises to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, profitability, dividends and risk.

Analyst Recommendations

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This is a breakdown of current ratings and target prices for Rush Enterprises and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rush Enterprises 0 2 3 0 2.60
Rush Enterprises Competitors 115 619 666 28 2.43

Rush Enterprises currently has a consensus price target of $51.25, suggesting a potential upside of 28.06%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 15.82%. Given Rush Enterprises’ stronger consensus rating and higher possible upside, research analysts clearly believe Rush Enterprises is more favorable than its competitors.

Earnings and Valuation

This table compares Rush Enterprises and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Rush Enterprises $4.71 billion $172.12 million 17.48
Rush Enterprises Competitors $8.01 billion $220.42 million 12.15

Rush Enterprises’ competitors have higher revenue and earnings than Rush Enterprises. Rush Enterprises is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Rush Enterprises and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rush Enterprises 3.65% 10.00% 3.42%
Rush Enterprises Competitors 3.22% 33.52% 3.60%

Institutional and Insider Ownership

78.7% of Rush Enterprises shares are held by institutional investors. Comparatively, 62.1% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 11.2% of Rush Enterprises shares are held by insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Rush Enterprises has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Rush Enterprises’ competitors have a beta of 9.96, meaning that their average stock price is 896% more volatile than the S&P 500.

Summary

Rush Enterprises competitors beat Rush Enterprises on 7 of the 13 factors compared.

About Rush Enterprises

Rush Enterprises, Inc. is an integrated retailer of commercial vehicles and related services. The Company operates through the Truck Segment, which includes its operation of a regional network of commercial vehicle dealerships under the name Rush Truck Centers. Through its Rush Truck Centers, it offers services, including retail sales of new and used commercial vehicles, aftermarket parts sales, service and repair facilities, financing, leasing and rental, and insurance products. As of December 31, 2016, the Company operated 100 Rush Truck Centers in 21 states. The Company’s Rush Truck Centers are located in Alabama, Arizona, California, Colorado, Florida, Georgia, Idaho, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Tennessee, Texas, Utah and Virginia. Its Rush Truck Leasing provides full-service maintenance on customers’ vehicles. At Rush Truck Centers, it offers third-party financing to assist customers in purchasing new and used commercial vehicles.

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