Oshkosh (NYSE:OSK – Get Free Report) and China Automotive Systems (NASDAQ:CAAS – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Oshkosh and China Automotive Systems, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oshkosh | 1 | 4 | 12 | 0 | 2.65 |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
Oshkosh currently has a consensus price target of $145.50, suggesting a potential upside of 12.42%. Given Oshkosh’s stronger consensus rating and higher probable upside, analysts clearly believe Oshkosh is more favorable than China Automotive Systems.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Oshkosh | 6.43% | 16.60% | 7.39% |
| China Automotive Systems | 4.62% | 8.38% | 3.96% |
Earnings and Valuation
This table compares Oshkosh and China Automotive Systems”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oshkosh | $10.76 billion | 0.76 | $681.40 million | $10.25 | 12.63 |
| China Automotive Systems | $650.93 million | 0.19 | $29.98 million | $1.11 | 3.74 |
Oshkosh has higher revenue and earnings than China Automotive Systems. China Automotive Systems is trading at a lower price-to-earnings ratio than Oshkosh, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Oshkosh has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Institutional & Insider Ownership
92.4% of Oshkosh shares are held by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are held by institutional investors. 0.6% of Oshkosh shares are held by company insiders. Comparatively, 64.8% of China Automotive Systems shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Oshkosh beats China Automotive Systems on 13 of the 14 factors compared between the two stocks.
About Oshkosh
Oshkosh Corporation provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.
About China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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