THK (OTCMKTS:THKLY – Get Free Report) and Wabash National (NYSE:WNC – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Volatility and Risk
THK has a beta of 1.18, indicating that its share price is 18% more 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.
Profitability
This table compares THK and Wabash National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| THK | N/A | N/A | N/A |
| Wabash National | -5.48% | -36.59% | -10.27% |
Insider & Institutional Ownership
Analyst Recommendations
This is a summary of current recommendations and price targets for THK and Wabash National, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| THK | 0 | 1 | 0 | 0 | 2.00 |
| Wabash National | 1 | 1 | 2 | 0 | 2.25 |
Wabash National has a consensus price target of $18.00, indicating a potential upside of 38.95%. Given Wabash National’s stronger consensus rating and higher probable upside, analysts clearly believe Wabash National is more favorable than THK.
Valuation and Earnings
This table compares THK and Wabash National”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| THK | $1.61 billion | 3.45 | -$468.27 million | $0.30 | 77.57 |
| Wabash National | $1.54 billion | 0.34 | $211.45 million | ($1.93) | -6.71 |
Wabash National has lower revenue, but higher earnings than THK. Wabash National is trading at a lower price-to-earnings ratio than THK, indicating that it is currently the more affordable of the two stocks.
Dividends
THK pays an annual dividend of $0.48 per share and has a dividend yield of 2.1%. Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.5%. THK pays out 160.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Wabash National pays out -16.6% of its earnings in the form of a dividend. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Wabash National beats THK on 9 of the 16 factors compared between the two stocks.
About THK
THK Co., Ltd. engages in the manufacture and sale of mechanical components worldwide. The company provides linear motion (LM) guides, ball screws, ball splines, LM guide actuators, cross roller rings/ double row angular contact ring, electric actuators, linear motor actuators, cam followers, roller followers, linear bushes, LM strokes, slide packs, slide rails, cross roller guides and tables, linear ball slides, LM and flat rollers, spline nuts, screw nuts, change nuts, precision linear packs, link balls, rod ends, spherical plain bearings, lubrication accessories, and seismic isolation products. Its products are used in various applications, including machine tools, general industrial machinery, precision instruments, semiconductor and LCD manufacturing equipment, industrial robots, electronic devices, and transport systems, as well as in construction, aerospace, medical and assistive, and other manufacturing industries. The company was incorporated in 1946 and is headquartered in Tokyo, Japan.
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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