Head-To-Head Contrast: CNH Industrial (CNHI) versus Navistar International (NAV)

CNH Industrial (NYSE: CNHI) and Navistar International (NYSE:NAV) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, risk, earnings, dividends and institutional ownership.

Profitability

This table compares CNH Industrial and Navistar International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial 1.66% 14.63% 1.41%
Navistar International 0.35% -0.96% 0.81%

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Navistar International does not pay a dividend. CNH Industrial pays out 37.5% of its earnings in the form of a dividend.

Risk and Volatility

CNH Industrial has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, Navistar International has a beta of 2.71, suggesting that its share price is 171% more volatile than the S&P 500.

Earnings & Valuation

This table compares CNH Industrial and Navistar International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CNH Industrial $24.87 billion 0.74 -$252.00 million $0.32 42.06
Navistar International $8.57 billion 0.50 $30.00 million $0.12 361.58

Navistar International has lower revenue, but higher earnings than CNH Industrial. CNH Industrial is trading at a lower price-to-earnings ratio than Navistar International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for CNH Industrial and Navistar International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial 0 2 6 0 2.75
Navistar International 1 7 6 0 2.36

CNH Industrial presently has a consensus price target of $13.43, indicating a potential downside of 0.20%. Navistar International has a consensus price target of $42.00, indicating a potential downside of 3.20%. Given CNH Industrial’s stronger consensus rating and higher probable upside, research analysts clearly believe CNH Industrial is more favorable than Navistar International.

Insider and Institutional Ownership

18.2% of CNH Industrial shares are held by institutional investors. Comparatively, 83.0% of Navistar International shares are held by institutional investors. 21.8% of Navistar International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Summary

CNH Industrial beats Navistar International on 9 of the 15 factors compared between the two stocks.

About CNH Industrial

CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.

About Navistar International

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.

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