Head to Head Analysis: Oshkosh (OSK) vs. WABCO (WBC)

Oshkosh (NYSE: OSK) and WABCO (NYSE:WBC) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Recommendations

This is a summary of current recommendations for Oshkosh and WABCO, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh 0 3 10 0 2.77
WABCO 0 4 11 0 2.73

Oshkosh currently has a consensus price target of $93.75, indicating a potential upside of 1.58%. WABCO has a consensus price target of $159.36, indicating a potential upside of 2.80%. Given WABCO’s higher possible upside, analysts clearly believe WABCO is more favorable than Oshkosh.

Profitability

This table compares Oshkosh and WABCO’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh 4.18% 15.14% 6.54%
WABCO 9.75% 38.93% 10.53%

Volatility & Risk

Oshkosh has a beta of 1.84, suggesting that its stock price is 84% more volatile than the S&P 500. Comparatively, WABCO has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.0%. WABCO does not pay a dividend. Oshkosh pays out 25.5% of its earnings in the form of a dividend. WABCO has increased its dividend for 3 consecutive years.

Insider & Institutional Ownership

94.0% of Oshkosh shares are held by institutional investors. Comparatively, 95.3% of WABCO shares are held by institutional investors. 2.0% of Oshkosh shares are held by company insiders. Comparatively, 0.8% of WABCO shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Oshkosh and WABCO’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oshkosh $6.83 billion 1.01 $285.60 million $3.76 24.55
WABCO $2.81 billion 2.96 $223.00 million $5.53 28.03

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

Summary

WABCO beats Oshkosh on 11 of the 17 factors compared between the two stocks.

About Oshkosh

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.

About WABCO

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

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