Oshkosh (NYSE: OSK) and AGCO (NYSE:AGCO) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Volatility & Risk
Oshkosh has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, AGCO has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500.
Earnings & Valuation
This table compares Oshkosh and AGCO’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oshkosh||$6.83 billion||0.99||$285.60 million||$3.76||24.17|
|AGCO||$7.41 billion||0.77||$160.10 million||$2.54||28.12|
Oshkosh has higher earnings, but lower revenue than AGCO. Oshkosh is trading at a lower price-to-earnings ratio than AGCO, indicating that it is currently the more affordable of the two stocks.
This table compares Oshkosh and AGCO’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.1%. AGCO pays an annual dividend of $0.56 per share and has a dividend yield of 0.8%. Oshkosh pays out 25.5% of its earnings in the form of a dividend. AGCO pays out 22.0% 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. Oshkosh has raised its dividend for 2 consecutive years and AGCO has raised its dividend for 4 consecutive years.
Insider and Institutional Ownership
94.0% of Oshkosh shares are held by institutional investors. Comparatively, 82.9% of AGCO shares are held by institutional investors. 1.6% of Oshkosh shares are held by company insiders. Comparatively, 16.6% of AGCO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a summary of recent recommendations and price targets for Oshkosh and AGCO, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oshkosh presently has a consensus target price of $92.75, suggesting a potential upside of 2.05%. AGCO has a consensus target price of $71.57, suggesting a potential upside of 0.20%. Given Oshkosh’s stronger consensus rating and higher possible upside, research analysts clearly believe Oshkosh is more favorable than AGCO.
Oshkosh beats AGCO on 12 of the 17 factors compared between the two stocks.
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.
AGCO Corporation is a manufacturer and distributor of agricultural equipment and related replacement parts. The Company sells a range of agricultural equipment, including tractors, combines, self-propelled sprayers, hay tools, forage equipment, seeding and tillage equipment, implements, and grain storage and protein production systems. The Company’s segments are North America, South America, Europe/Middle East, and Asia/Pacific/Africa. The Company’s products are marketed under various brands, including Challenger, Fendt, GSI, Massey Ferguson and Valtra. As of December 31, 2016, the Company distributed its products through over 3,000 independent dealers and distributors in more than 150 countries. In addition, the Company also provides retail and wholesale financing through its finance joint ventures with Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank). The Company’s AGCO Power engines division produces diesel engines, gears and generating sets.
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