PACCAR (NASDAQ: PCAR) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its competitors? We will compare PACCAR to similar businesses based on the strength of its earnings, profitability, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility and Risk

PACCAR has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, PACCAR’s competitors have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
PACCAR 7.61% 18.77% 6.33%
PACCAR Competitors 4.06% 13.41% 3.96%

Institutional & Insider Ownership

62.4% of PACCAR shares are owned by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 2.6% of PACCAR shares are owned by insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. PACCAR pays out 25.6% 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 35.9% of their earnings in the form of a dividend. PACCAR is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation and Earnings

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

Gross Revenue NetIncome Price/Earnings Ratio
PACCAR $17.03 billion $521.70 million 17.16
PACCAR Competitors $6.06 billion $48.37 million 167.26

PACCAR has higher revenue and earnings than its competitors. PACCAR 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.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PACCAR and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 11 9 0 2.38
PACCAR Competitors 171 876 957 17 2.41

PACCAR currently has a consensus price target of $75.53, suggesting a potential upside of 12.83%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.15%. Given PACCAR’s higher possible upside, research analysts plainly believe PACCAR is more favorable than its competitors.

Summary

PACCAR beats its competitors on 8 of the 15 factors compared.

PACCAR Company Profile

PACCAR Inc (PACCAR) is a technology company. The Company’s segments include Truck, Parts and Financial Services. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. The Company’s trucks are marketed under the Kenworth, Peterbilt and DAF nameplates. It also manufactures engines, primarily for use in the Company’s trucks, at its facilities in Columbus, Mississippi; Eindhoven, the Netherlands, and Ponta Grossa, Brazil. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Financial Services segment includes finance and leasing products and services provided to customers and dealers. Its Other business includes the manufacturing and marketing of industrial winches. The Company operates in Australia and Brazil and sells trucks and parts to customers in Asia, Africa, Middle East and South America.

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