Rush Enterprises (NASDAQ:RUSHA) & DNOW (NYSE:DNOW) Head to Head Comparison

Rush Enterprises (NASDAQ:RUSHA) and DNOW (NYSE:DNOW) are both mid-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Earnings and Valuation

This table compares Rush Enterprises and DNOW”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rush Enterprises	$7.43 billion	0.76	$263.78 million	$2.21	22.00
DNOW	$4.08 billion	0.69	-$89.00 million	($1.07)	-14.62

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

Profitability

This table compares Rush Enterprises and DNOW’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rush Enterprises	3.67%	11.65%	5.84%
DNOW	-4.58%	3.91%	2.25%

Risk and Volatility

Rush Enterprises has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, DNOW has a beta of 0.87, suggesting that its stock price is 13% less volatile than the S&P 500.

Institutional and Insider Ownership

84.4% of Rush Enterprises shares are held by institutional investors. Comparatively, 97.6% of DNOW shares are held by institutional investors. 12.7% of Rush Enterprises shares are held by insiders. Comparatively, 1.9% of DNOW shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations and price targets for Rush Enterprises and DNOW, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rush Enterprises	1	1	3	0	2.40
DNOW	1	2	3	1	2.57

Rush Enterprises currently has a consensus price target of $46.00, indicating a potential downside of 5.41%. DNOW has a consensus price target of $18.20, indicating a potential upside of 16.35%. Given DNOW’s stronger consensus rating and higher probable upside, analysts plainly believe DNOW is more favorable than Rush Enterprises.

Summary

Rush Enterprises beats DNOW on 10 of the 14 factors compared between the two stocks.

About Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance products. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services, body, chassis upfitting, and component installation services; and vehicle telematics products, as well as sells new and used trailers, and tires for use on commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner-operators. It operates a network of centers located in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Ontario. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.