CNH Industrial (NYSE: CNHI) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it compare to its competitors? We will compare CNH Industrial to similar businesses based on the strength of its institutional ownership, valuation, profitability, earnings, analyst recommendations, dividends and risk.

Volatility & Risk

CNH Industrial has a beta of 0.86, indicating that its share price is 14% less volatile than the S&P 500. Comparatively, CNH Industrial’s competitors have a beta of 1.44, indicating that their average share price is 44% more volatile than the S&P 500.

Profitability

This table compares CNH Industrial and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial 1.66% 14.63% 1.41%
CNH Industrial Competitors 4.06% 13.41% 3.96%

Institutional and Insider Ownership

18.3% of CNH Industrial shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned 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.

Analyst Recommendations

This is a summary of current ratings and target prices for CNH Industrial and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial 1 3 4 0 2.38
CNH Industrial Competitors 171 876 957 17 2.41

CNH Industrial presently has a consensus target price of $11.27, suggesting a potential downside of 14.13%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.56%. Given CNH Industrial’s competitors stronger consensus rating and higher probable upside, analysts plainly believe CNH Industrial has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares CNH Industrial and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
CNH Industrial $24.87 billion -$252.00 million 41.00
CNH Industrial Competitors $6.06 billion $48.37 million 164.98

CNH Industrial has higher revenue, but lower earnings than its competitors. CNH Industrial is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. CNH Industrial pays out 37.5% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. CNH Industrial lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

CNH Industrial competitors beat CNH Industrial on 12 of the 15 factors compared.

CNH Industrial Company Profile

CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.

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