Douglas Dynamics (NYSE: PLOW) and Oshkosh (NYSE:OSK) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Douglas Dynamics pays an annual dividend of $0.96 per share and has a dividend yield of 2.3%. Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.0%. Douglas Dynamics pays out 71.6% of its earnings in the form of a dividend. Oshkosh pays out 25.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Douglas Dynamics has increased its dividend for 5 consecutive years and Oshkosh has increased its dividend for 3 consecutive years. Douglas Dynamics is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility & Risk
Douglas Dynamics has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Douglas Dynamics and Oshkosh, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Douglas Dynamics currently has a consensus target price of $42.00, indicating a potential upside of 1.82%. Oshkosh has a consensus target price of $93.75, indicating a potential downside of 1.16%. Given Douglas Dynamics’ stronger consensus rating and higher possible upside, equities analysts plainly believe Douglas Dynamics is more favorable than Oshkosh.
This table compares Douglas Dynamics and Oshkosh’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
90.2% of Douglas Dynamics shares are held by institutional investors. Comparatively, 94.2% of Oshkosh shares are held by institutional investors. 3.2% of Douglas Dynamics shares are held by insiders. Comparatively, 2.0% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Douglas Dynamics and Oshkosh’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Douglas Dynamics||$416.27 million||2.24||$39.00 million||$1.34||30.78|
|Oshkosh||$6.83 billion||1.04||$285.60 million||$3.76||25.23|
Oshkosh has higher revenue and earnings than Douglas Dynamics. Oshkosh is trading at a lower price-to-earnings ratio than Douglas Dynamics, indicating that it is currently the more affordable of the two stocks.
Oshkosh beats Douglas Dynamics on 9 of the 17 factors compared between the two stocks.
About Douglas Dynamics
Douglas Dynamics, Inc. is a manufacturer and up-fitter of commercial vehicle attachments and equipment. The Company’s portfolio includes snow and ice management attachments sold under the BLIZZARD, FISHER, HENDERSON, SNOWEX and WESTERN brands, turf care equipment under the TURFEX brand and industrial maintenance equipment under the SWEEPEX brand. The Company operates through two segments: Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment includes snow and ice management attachments sold under the FISHER, WESTERN, HENDERSON and SNOWEX brands. The Work Truck Solutions segment includes the up-fit of attachments and storage solutions for commercial work vehicles under the DEJANA brand and its related sub-brands. In its Work Truck Attachments segment, the Company offers a product line of snowplows, and sand and salt spreaders for light and heavy duty trucks. Its Work Truck Solutions products consist of truck and vehicle up-fits.
Oshkosh Corporation is a manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire and emergency. The company’s brands include Oshkosh, JLG, Pierce, McNeilus, IMT, Frontline, Jerr-Dan, CON-E-CO and London. The Company operates through four segments: Access equipment, Defense, Fire & emergency and Commercial. The Access equipment segment provides aerial work platforms and telehandlers to position workers and materials at elevated heights. The Defense segment provides supply parts and services and wheeled vehicles. The Fire & Emergency segment manufactures and markets commercial and custom fire vehicles, simulators and emergency vehicles. The Commercial segment manufactures, markets and distributes concrete mixers, portable concrete batch plants, and vehicle and vehicle body components.
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