Rush Enterprises (NASDAQ:RUSHA – Get Free Report) and Rectitude (NASDAQ:RECT – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Valuation and Earnings
This table compares Rush Enterprises and Rectitude”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rush Enterprises | $7.24 billion | 0.82 | $263.78 million | $3.32 | 23.06 |
| Rectitude | $39.74 million | 0.54 | $2.78 million | N/A | N/A |
Volatility & Risk
Rush Enterprises has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, Rectitude has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Institutional and Insider Ownership
84.4% of Rush Enterprises shares are owned by institutional investors. 12.7% of Rush Enterprises shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Rush Enterprises and Rectitude, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rush Enterprises | 0 | 2 | 3 | 0 | 2.60 |
| Rectitude | 1 | 0 | 0 | 0 | 1.00 |
Rush Enterprises currently has a consensus target price of $69.00, suggesting a potential downside of 9.87%. Given Rush Enterprises’ stronger consensus rating and higher probable upside, equities analysts clearly believe Rush Enterprises is more favorable than Rectitude.
Profitability
This table compares Rush Enterprises and Rectitude’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rush Enterprises | 3.67% | 11.65% | 5.84% |
| Rectitude | N/A | N/A | N/A |
Summary
Rush Enterprises beats Rectitude on 11 of the 12 factors compared between the two stocks.
About Rush Enterprises
Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance products. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services, body, chassis upfitting, and component installation services; and vehicle telematics products, as well as sells new and used trailers, and tires for use on commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner-operators. It operates a network of centers located in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Ontario. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.
About Rectitude
Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.
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