Financial Analysis: Oshkosh (NYSE:OSK) versus Gentherm (NASDAQ:THRM)

Gentherm (NASDAQ:THRM) and Oshkosh (NYSE:OSK) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, profitability, risk, dividends, institutional ownership and valuation.

Valuation & Earnings

This table compares Gentherm and Oshkosh”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.46 billion	0.68	$64.95 million	$1.00	32.21
Oshkosh	$10.42 billion	1.04	$647.00 million	$10.02	17.09

Oshkosh has higher revenue and earnings than Gentherm. Oshkosh is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 92.4% of Oshkosh shares are held by institutional investors. 1.4% of Gentherm shares are held by insiders. Comparatively, 0.6% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Gentherm and Oshkosh’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentherm	2.08%	9.55%	4.80%
Oshkosh	6.21%	15.69%	7.02%

Risk & Volatility

Gentherm has a beta of 1.34, suggesting that its share price is 34% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Gentherm and Oshkosh, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	1	2	1	1	2.40
Oshkosh	1	5	12	0	2.61

Gentherm presently has a consensus target price of $43.00, indicating a potential upside of 33.50%. Oshkosh has a consensus target price of $159.60, indicating a potential downside of 6.81%. Given Gentherm’s higher possible upside, analysts plainly believe Gentherm is more favorable than Oshkosh.

Summary

Oshkosh beats Gentherm on 10 of the 15 factors compared between the two stocks.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

About Oshkosh

Oshkosh Corporation provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.