Douglas Dynamics (NYSE: PLOW) and CNH Industrial NV (NASDAQ:CNHI) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.
Insider & Institutional Ownership
89.4% of Douglas Dynamics shares are owned by institutional investors. 3.2% of Douglas Dynamics shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent ratings and target prices for Douglas Dynamics and CNH Industrial NV, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CNH Industrial NV||1||4||2||0||2.14|
Douglas Dynamics presently has a consensus price target of $42.00, indicating a potential upside of 20.86%. CNH Industrial NV has a consensus price target of $10.97, indicating a potential downside of 3.62%. Given Douglas Dynamics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Douglas Dynamics is more favorable than CNH Industrial NV.
This table compares Douglas Dynamics and CNH Industrial NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CNH Industrial NV||3.17%||21.59%||1.91%|
Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.8%. CNH Industrial NV does not pay a dividend. Douglas Dynamics pays out 76.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CNH Industrial NV has raised its dividend for 4 consecutive years.
Earnings and Valuation
This table compares Douglas Dynamics and CNH Industrial NV’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Douglas Dynamics||$465.33 million||1.69||$86.94 million||$1.26||27.58|
|CNH Industrial NV||$24.18 billion||0.64||$2.44 billion||N/A||N/A|
CNH Industrial NV has higher revenue and earnings than Douglas Dynamics.
Douglas Dynamics beats CNH Industrial NV on 8 of the 14 factors compared between the two stocks.
About Douglas Dynamics
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.
About CNH Industrial NV
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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