PACCAR (NASDAQ:PCAR – Get Free Report) and A.M. Castle & Co. (OTCMKTS:CTAM – 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 dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Analyst Ratings
This is a summary of current ratings and price targets for PACCAR and A.M. Castle & Co., as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PACCAR | 0 | 11 | 3 | 0 | 2.21 |
| A.M. Castle & Co. | 0 | 0 | 0 | 0 | 0.00 |
PACCAR currently has a consensus target price of $131.70, suggesting a potential upside of 2.57%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts clearly believe PACCAR is more favorable than A.M. Castle & Co..
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| PACCAR | 9.00% | 12.73% | 5.69% |
| A.M. Castle & Co. | N/A | N/A | N/A |
Institutional and Insider Ownership
64.9% of PACCAR shares are held by institutional investors. 2.0% of PACCAR 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.
Earnings & Valuation
This table compares PACCAR and A.M. Castle & Co.”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PACCAR | $27.82 billion | 2.43 | $2.38 billion | $4.76 | 26.97 |
| A.M. Castle & Co. | N/A | N/A | N/A | N/A | N/A |
PACCAR has higher revenue and earnings than A.M. Castle & Co..
Summary
PACCAR beats A.M. Castle & Co. on 9 of the 9 factors compared between the two stocks.
About PACCAR
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.
About A.M. Castle & Co.
A.M. Castle & Co. engages in the distribution of specialty metals and supply chain services. The firm serves the producer equipment, commercial and military aircraft, heavy equipment, industrial goods, and construction equipment sectors. Its products include alloy and stainless steels, nickel alloys, aluminum, titanium, and carbon. The company was founded in 1890 and is headquartered in Oak Brook, IL.
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