Contrasting PACCAR (PCAR) & ASV Holdings (ASV)

PACCAR (NASDAQ: PCAR) and ASV Holdings (NYSE:ASV) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, valuation and analyst recommendations.

Institutional & Insider Ownership

62.4% of PACCAR shares are owned by institutional investors. 2.6% of PACCAR shares are owned 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.

Valuation and Earnings

This table compares PACCAR and ASV Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
PACCAR $17.03 billion 1.44 $521.70 million $3.90 17.84
ASV Holdings N/A N/A N/A $0.06 134.67

PACCAR has higher revenue and earnings than ASV Holdings. PACCAR is trading at a lower price-to-earnings ratio than ASV Holdings, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for PACCAR and ASV Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 11 9 0 2.38
ASV Holdings 0 0 2 0 3.00

PACCAR presently has a consensus price target of $75.53, indicating a potential upside of 8.53%. ASV Holdings has a consensus price target of $10.75, indicating a potential upside of 33.04%. Given ASV Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe ASV Holdings is more favorable than PACCAR.

Profitability

This table compares PACCAR and ASV Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PACCAR 7.61% 18.77% 6.33%
ASV Holdings 5.12% 11.75% 6.11%

Dividends

PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. ASV Holdings does not pay a dividend. PACCAR pays out 25.6% of its earnings in the form of a dividend.

Summary

PACCAR beats ASV Holdings on 9 of the 12 factors compared between the two stocks.

PACCAR Company Profile

PACCAR Inc (PACCAR) is a technology company. The Company’s segments include Truck, Parts and Financial Services. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. The Company’s trucks are marketed under the Kenworth, Peterbilt and DAF nameplates. It also manufactures engines, primarily for use in the Company’s trucks, at its facilities in Columbus, Mississippi; Eindhoven, the Netherlands, and Ponta Grossa, Brazil. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Financial Services segment includes finance and leasing products and services provided to customers and dealers. Its Other business includes the manufacturing and marketing of industrial winches. The Company operates in Australia and Brazil and sells trucks and parts to customers in Asia, Africa, Middle East and South America.

ASV Holdings Company Profile

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

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