Iochpe-Maxion (OTCMKTS:IOCJY – Get Free Report) and Wabash National (NYSE:WNC – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Earnings and Valuation
This table compares Iochpe-Maxion and Wabash National”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Iochpe-Maxion | $2.75 billion | 0.09 | $17.62 million | $0.03 | 18.03 |
| Wabash National | $1.54 billion | 0.33 | $211.45 million | ($1.93) | -6.46 |
Dividends
Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.8%. Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. Iochpe-Maxion pays out 33.3% of its earnings in the form of a dividend. Wabash National pays out -16.6% 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. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Iochpe-Maxion and Wabash National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Iochpe-Maxion | 0.58% | 1.88% | 0.61% |
| Wabash National | -5.48% | -36.59% | -10.27% |
Volatility and Risk
Iochpe-Maxion has a beta of 0.67, indicating that its share price is 33% less volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.
Insider and Institutional Ownership
97.0% of Wabash National shares are held by institutional investors. 2.8% of Wabash National shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current ratings and price targets for Iochpe-Maxion and Wabash National, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Iochpe-Maxion | 0 | 1 | 0 | 0 | 2.00 |
| Wabash National | 1 | 1 | 2 | 0 | 2.25 |
Wabash National has a consensus target price of $18.00, suggesting a potential upside of 44.44%. Given Wabash National’s stronger consensus rating and higher possible upside, analysts clearly believe Wabash National is more favorable than Iochpe-Maxion.
Summary
Wabash National beats Iochpe-Maxion on 10 of the 16 factors compared between the two stocks.
About Iochpe-Maxion
Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.
About Wabash National
Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.
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