Douglas Dynamics (PLOW) & CNH Industrial (CNHI) Head to Head Analysis

Douglas Dynamics (NYSE: PLOW) and CNH Industrial (NYSE:CNHI) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, risk, dividends and earnings.

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Douglas Dynamics $416.27 million 2.24 $39.00 million $1.34 30.78
CNH Industrial $24.87 billion 0.82 -$252.00 million $0.32 46.69

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

Volatility & Risk

Douglas Dynamics has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, CNH Industrial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Douglas Dynamics and CNH Industrial, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Douglas Dynamics 0 0 2 0 3.00
CNH Industrial 0 3 6 0 2.67

Douglas Dynamics presently has a consensus target price of $42.00, indicating a potential upside of 1.82%. CNH Industrial has a consensus target price of $14.49, indicating a potential downside of 3.03%. Given Douglas Dynamics’ stronger consensus rating and higher possible upside, research analysts plainly believe Douglas Dynamics is more favorable than CNH Industrial.

Insider and Institutional Ownership

90.2% of Douglas Dynamics shares are owned by institutional investors. Comparatively, 18.2% of CNH Industrial shares are owned by institutional investors. 3.2% of Douglas Dynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Douglas Dynamics 6.59% 13.98% 4.58%
CNH Industrial 1.66% 14.63% 1.41%

Dividends

Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Douglas Dynamics pays out 71.6% 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 raised its dividend for 5 consecutive years.

Summary

Douglas Dynamics beats CNH Industrial on 11 of the 17 factors compared between the two stocks.

Douglas Dynamics Company Profile

Douglas Dynamics, Inc. is a manufacturer and up-fitter of commercial vehicle attachments and equipment. The Company’s portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company operates through two segments: Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment includes snow and ice management attachments sold under the FISHER, WESTERN, HENDERSON and SNOWEX brands. The Work Truck Solutions segment includes the up-fit of attachments and storage solutions for commercial work vehicles under the DEJANA brand and its related sub-brands. In its Work Truck Attachments segment, the Company offers a product line of snowplows, and sand and salt spreaders for light and heavy duty trucks. Its Work Truck Solutions products consist of truck and vehicle up-fits.

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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