Navistar International Corporation (NYSE: NAV) and Manitowoc Company, Inc. (The) (NYSE:MTW) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitabiliy, risk, valuation and earnings.

Risk and Volatility

Navistar International Corporation has a beta of 2.71, meaning that its stock price is 171% more volatile than the S&P 500. Comparatively, Manitowoc Company, Inc. (The) has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Navistar International Corporation and Manitowoc Company, Inc. (The), as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navistar International Corporation 2 8 3 0 2.08
Manitowoc Company, Inc. (The) 1 6 3 0 2.20

Navistar International Corporation presently has a consensus price target of $27.00, indicating a potential downside of 13.96%. Manitowoc Company, Inc. (The) has a consensus price target of $6.03, indicating a potential downside of 18.65%. Given Navistar International Corporation’s higher probable upside, equities analysts plainly believe Navistar International Corporation is more favorable than Manitowoc Company, Inc. (The).

Profitability

This table compares Navistar International Corporation and Manitowoc Company, Inc. (The)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navistar International Corporation -2.66% N/A -2.88%
Manitowoc Company, Inc. (The) -14.37% -14.18% -5.63%

Valuation and Earnings

This table compares Navistar International Corporation and Manitowoc Company, Inc. (The)’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Navistar International Corporation $7.91 billion 0.39 $260.00 million ($2.46) -12.76
Manitowoc Company, Inc. (The) $1.49 billion 0.70 -$3.50 million ($1.55) -4.78

Navistar International Corporation has higher revenue and earnings than Manitowoc Company, Inc. (The). Navistar International Corporation is trading at a lower price-to-earnings ratio than Manitowoc Company, Inc. (The), indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

82.4% of Navistar International Corporation shares are owned by institutional investors. Comparatively, 79.3% of Manitowoc Company, Inc. (The) shares are owned by institutional investors. 21.8% of Navistar International Corporation shares are owned by company insiders. Comparatively, 2.7% of Manitowoc Company, Inc. (The) shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Navistar International Corporation beats Manitowoc Company, Inc. (The) on 9 of the 12 factors compared between the two stocks.

Navistar International Corporation Company Profile

Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.

Manitowoc Company, Inc. (The) Company Profile

The Manitowoc Company, Inc. is a provider of engineered lifting equipment for the construction industry. The Company operates through the Crane business segment. It designs, manufactures and distributes a line of crawler-mounted lattice-boom cranes, which it sells under the Manitowoc brand name. It also designs and manufactures a line of top-slewing and self-erecting tower cranes, which it sells under the Potain brand name. It designs and manufactures mobile telescopic cranes, which it sells under the Grove brand name and a line of hydraulically powered telescopic boom trucks, which it sells under the National Crane brand name. It also provides crane product parts and services and crane rebuilding, remanufacturing and training services, which are delivered under the Manitowoc Crane Care brand name. Its crane products are used in a range of applications, including energy production/distribution and utilities, petrochemical and industrial projects, and infrastructure applications.

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