Head-To-Head Analysis: Hyster-Yale Materials Handling (HY) and CNH Industrial (CNHI)
Hyster-Yale Materials Handling (NYSE: HY) and CNH Industrial (NYSE:CNHI) are both industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, profitability, analyst recommendations, valuation, risk, dividends and institutional ownership.
Insider and Institutional Ownership
50.9% of Hyster-Yale Materials Handling shares are owned by institutional investors. Comparatively, 18.2% of CNH Industrial shares are owned by institutional investors. 26.3% of Hyster-Yale Materials Handling shares are owned by 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.
This is a summary of current recommendations for Hyster-Yale Materials Handling and CNH Industrial, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hyster-Yale Materials Handling||1||1||1||0||2.00|
Hyster-Yale Materials Handling presently has a consensus target price of $74.00, suggesting a potential downside of 13.51%. CNH Industrial has a consensus target price of $14.23, suggesting a potential upside of 4.81%. Given CNH Industrial’s stronger consensus rating and higher probable upside, analysts clearly believe CNH Industrial is more favorable than Hyster-Yale Materials Handling.
Risk & Volatility
Hyster-Yale Materials Handling has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, CNH Industrial has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Hyster-Yale Materials Handling pays an annual dividend of $1.21 per share and has a dividend yield of 1.4%. CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. Hyster-Yale Materials Handling pays out 31.6% of its earnings in the form of a dividend. CNH Industrial pays out 37.5% 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. CNH Industrial has increased its dividend for 4 consecutive years. Hyster-Yale Materials Handling is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Hyster-Yale Materials Handling and CNH Industrial’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Hyster-Yale Materials Handling||$2.57 billion||0.55||$42.80 million||$3.83||22.34|
|CNH Industrial||$24.87 billion||0.74||-$252.00 million||$0.32||42.44|
Hyster-Yale Materials Handling has higher earnings, but lower revenue than CNH Industrial. Hyster-Yale Materials Handling is trading at a lower price-to-earnings ratio than CNH Industrial, indicating that it is currently the more affordable of the two stocks.
This table compares Hyster-Yale Materials Handling and CNH Industrial’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hyster-Yale Materials Handling||2.27%||11.34%||4.04%|
Hyster-Yale Materials Handling beats CNH Industrial on 9 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.
CNH Industrial Company Profile
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.
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