Critical Analysis: Navistar International Corporation (NAV) vs. Its Competitors
Navistar International Corporation (NYSE: NAV) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its peers? We will compare Navistar International Corporation to related companies based on the strength of its risk, institutional ownership, analyst recommendations, dividends, earnings, profitability and valuation.
Insider & Institutional Ownership
82.5% of Navistar International Corporation shares are held by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 21.8% of Navistar International Corporation shares are held by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Navistar International Corporation and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Navistar International Corporation||$8.11 billion||-$97.00 million||-22.86|
|Navistar International Corporation Competitors||$6.06 billion||$48.37 million||166.52|
Navistar International Corporation has higher revenue, but lower earnings than its peers. Navistar International Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Volatility and Risk
Navistar International Corporation has a beta of 2.74, suggesting that its share price is 174% more volatile than the S&P 500. Comparatively, Navistar International Corporation’s peers have a beta of 1.45, suggesting that their average share price is 45% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Navistar International Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navistar International Corporation||1||7||4||0||2.25|
|Navistar International Corporation Competitors||171||876||953||17||2.40|
Navistar International Corporation presently has a consensus target price of $36.40, suggesting a potential downside of 4.66%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.36%. Given Navistar International Corporation’s peers stronger consensus rating and higher probable upside, analysts clearly believe Navistar International Corporation has less favorable growth aspects than its peers.
This table compares Navistar International Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navistar International Corporation||-1.73%||N/A||-2.03%|
|Navistar International Corporation Competitors||4.06%||13.41%||3.96%|
Navistar International Corporation peers beat Navistar International Corporation on 8 of the 12 factors compared.
About Navistar International Corporation
Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.
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