Contrasting Navistar International Corporation (NAV) and Oshkosh Corporation (OSK)

Oshkosh Corporation (NYSE: OSK) and Navistar International Corporation (NYSE:NAV) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, institutional ownership, earnings, profitability and risk.

Risk and Volatility

Oshkosh Corporation has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, Navistar International Corporation has a beta of 2.74, meaning that its stock price is 174% more volatile than the S&P 500.

Profitability

This table compares Oshkosh Corporation and Navistar International Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh Corporation 4.18% 15.14% 6.54%
Navistar International Corporation -1.73% N/A -2.03%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Oshkosh Corporation and Navistar International Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh Corporation 0 4 10 0 2.71
Navistar International Corporation 1 7 4 0 2.25

Oshkosh Corporation presently has a consensus target price of $92.75, suggesting a potential upside of 8.77%. Navistar International Corporation has a consensus target price of $36.40, suggesting a potential downside of 3.19%. Given Oshkosh Corporation’s stronger consensus rating and higher possible upside, equities analysts plainly believe Oshkosh Corporation is more favorable than Navistar International Corporation.

Valuation and Earnings

This table compares Oshkosh Corporation and Navistar International Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Oshkosh Corporation $6.83 billion 0.93 $285.60 million $3.76 22.68
Navistar International Corporation $8.11 billion 0.46 -$97.00 million ($1.67) -22.51

Oshkosh Corporation has higher revenue, but lower earnings than Navistar International Corporation. Navistar International Corporation is trading at a lower price-to-earnings ratio than Oshkosh Corporation, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.2% of Oshkosh Corporation shares are owned by institutional investors. Comparatively, 82.5% of Navistar International Corporation shares are owned by institutional investors. 2.0% of Oshkosh Corporation shares are owned by company insiders. Comparatively, 21.8% of Navistar International Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Oshkosh Corporation pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. Navistar International Corporation does not pay a dividend. Oshkosh Corporation pays out 25.5% of its earnings in the form of a dividend. Navistar International Corporation has increased its dividend for 2 consecutive years.

Summary

Oshkosh Corporation beats Navistar International Corporation on 11 of the 16 factors compared between the two stocks.

Oshkosh Corporation Company Profile

Oshkosh Corporation is a manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire and emergency. The company’s brands include Oshkosh, JLG, Pierce, McNeilus, IMT, Frontline, Jerr-Dan, CON-E-CO and London. The Company operates through four segments: Access equipment, Defense, Fire & emergency and Commercial. The Access equipment segment provides aerial work platforms and telehandlers to position workers and materials at elevated heights. The Defense segment provides supply parts and services and wheeled vehicles. The Fire & Emergency segment manufactures and markets commercial and custom fire vehicles, simulators and emergency vehicles. The Commercial segment manufactures, markets and distributes concrete mixers, portable concrete batch plants, and vehicle and vehicle body components.

Navistar International Corporation Company Profile

Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.

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