Reviewing Donaldson (NYSE:DCI) and Daimler Truck (OTCMKTS:DTRUY)

Daimler Truck (OTCMKTS:DTRUY) and Donaldson (NYSE:DCI) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Daimler Truck and Donaldson, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daimler Truck	0	2	5	1	2.88
Donaldson	0	2	3	0	2.60

Donaldson has a consensus target price of $97.83, indicating a potential downside of 0.90%. Given Donaldson’s higher possible upside, analysts plainly believe Donaldson is more favorable than Daimler Truck.

Valuation and Earnings

This table compares Daimler Truck and Donaldson”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daimler Truck	N/A	N/A	N/A	N/A	N/A
Donaldson	$3.69 billion	3.10	$367.00 million	$3.72	26.54

Donaldson has higher revenue and earnings than Daimler Truck.

Profitability

This table compares Daimler Truck and Donaldson’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daimler Truck	N/A	N/A	N/A
Donaldson	11.52%	29.17%	14.98%

Institutional & Insider Ownership

82.8% of Donaldson shares are owned by institutional investors. 2.2% of Donaldson shares are owned 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.

Dividends

Daimler Truck pays an annual dividend of $0.79 per share and has a dividend yield of 2.9%. Donaldson pays an annual dividend of $1.28 per share and has a dividend yield of 1.3%. Donaldson pays out 34.4% of its earnings in the form of a dividend. Donaldson has increased its dividend for 38 consecutive years.

Summary

Donaldson beats Daimler Truck on 8 of the 13 factors compared between the two stocks.

About Daimler Truck

Daimler Truck Holding AG manufactures and sells commercial trucks. The company was founded in 2021 and is based in Stuttgart, Germany.

About Donaldson

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems. This segment sells its products to original equipment manufacturers (OEMs) in the construction, mining, agriculture, aerospace, defense, and transportation markets; and to independent distributors, and OEM dealer networks. The company's Industrial Solutions segment offers dust, fume, and mist collectors; compressed air and industrial gasses purification systems; and hydraulic and lubricated rotating equipment applications, as well as gas and liquid filtration for industrial processes. This segment sells its products to various distributors, OEMs, and end-users. Its Life Sciences segment provides micro-environment gas and liquid filtration for food, beverage, and industrial processes; bioprocessing equipment, that includes bioreactors and fermenters; and bioprocessing consumables, such as chromatography devices, reagents and filters, and polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications, including hard disk drives, semi-conductor manufacturing and sensors, battery systems, and powertrain components to OEMs and various end-users. The company was founded in 1915 and is headquartered in Bloomington, Minnesota.