Comparing Hyster-Yale Materials Handling (HY) & PACCAR (PCAR)
Hyster-Yale Materials Handling (NYSE: HY) and PACCAR (NASDAQ:PCAR) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitabiliy and analyst recommendations.
Hyster-Yale Materials Handling pays an annual dividend of $1.21 per share and has a dividend yield of 1.9%. PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. Hyster-Yale Materials Handling pays out 33.8% of its earnings in the form of a dividend. PACCAR pays out 26.7% 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. PACCAR has raised its dividend for 4 consecutive years.
Valuation and Earnings
This table compares Hyster-Yale Materials Handling and PACCAR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Hyster-Yale Materials Handling||$2.72 billion||0.39||$101.90 million||$3.58||18.15|
|PACCAR||$17.26 billion||1.40||$2.39 billion||$3.74||18.34|
PACCAR has higher revenue and earnings than Hyster-Yale Materials Handling. Hyster-Yale Materials Handling is trading at a lower price-to-earnings ratio than PACCAR, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
68.0% of Hyster-Yale Materials Handling shares are owned by institutional investors. Comparatively, 61.4% of PACCAR shares are owned by institutional investors. 26.3% of Hyster-Yale Materials Handling shares are owned by company insiders. Comparatively, 2.6% of PACCAR shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares Hyster-Yale Materials Handling and PACCAR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hyster-Yale Materials Handling||2.17%||11.73%||4.33%|
This is a breakdown of current ratings for Hyster-Yale Materials Handling and PACCAR, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hyster-Yale Materials Handling||0||2||1||0||2.33|
Hyster-Yale Materials Handling presently has a consensus price target of $74.00, suggesting a potential upside of 13.92%. PACCAR has a consensus price target of $71.87, suggesting a potential upside of 4.79%. Given Hyster-Yale Materials Handling’s higher probable upside, equities research analysts plainly believe Hyster-Yale Materials Handling is more favorable than PACCAR.
Volatility and Risk
Hyster-Yale Materials Handling has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500.
PACCAR beats Hyster-Yale Materials Handling on 13 of the 17 factors compared between the two stocks.
Hyster-Yale Materials Handling Company Profile
Hyster-Yale Materials Handling, Inc. is a lift truck manufacturer. The Company designs, engineers, manufactures, sells and services a line of lift trucks, attachments and aftermarket parts marketed globally under the Hyster and Yale brand names, mainly to independent Hyster and Yale retail dealerships. The Company operates through five segments: the Americas, EMEA, JAPIC, Bolzoni and Nuvera. The Company offers a range of solutions, including attachments and hydrogen fuel cell power products, telematics, automation and fleet management services, as well as an array of other power options for its lift trucks. The Company’s segments for the lift truck business include three management units: the Americas, EMEA and JAPIC. Americas includes operations in the United States, Canada, Mexico, Brazil, Latin America and its corporate headquarters. EMEA includes operations in Europe, the Middle East and Africa. JAPIC includes operations in the Asia and Pacific regions including China.
PACCAR Company Profile
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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