Wabco Holdings (NYSE: WBC) and ASV Holdings (NYSE:ASV) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Institutional and Insider Ownership

97.5% of Wabco Holdings shares are owned by institutional investors. 0.8% of Wabco Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Wabco Holdings and ASV Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Wabco Holdings 11.23% 40.21% 10.86%
ASV Holdings 5.12% 11.75% 6.11%

Valuation & Earnings

This table compares Wabco Holdings and ASV Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Wabco Holdings $2.93 billion 2.60 $479.40 million $6.00 23.71
ASV Holdings $110.31 million 0.71 $10.71 million N/A N/A

Wabco Holdings has higher revenue and earnings than ASV Holdings.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wabco Holdings and ASV Holdings, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Wabco Holdings 1 3 9 0 2.62
ASV Holdings 0 0 2 0 3.00

Wabco Holdings currently has a consensus price target of $140.91, indicating a potential downside of 0.94%. ASV Holdings has a consensus price target of $10.75, indicating a potential upside of 35.22%. Given ASV Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe ASV Holdings is more favorable than Wabco Holdings.

Summary

Wabco Holdings beats ASV Holdings on 9 of the 12 factors compared between the two stocks.

Wabco Holdings Company Profile

WABCO Holdings Inc. is a supplier of electronic, mechanical, electro-mechanical and aerodynamic products for various manufacturers of commercial trucks, buses and trailers, as well as passenger cars. The Company engineers, develops, manufactures and sells braking, stability, suspension and transmission automation and air management systems primarily for commercial vehicles. Its products are pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, air disc brakes, and a range of conventional mechanical products, such as actuators, air compressors and air control valves for medium- and heavy-duty trucks, buses and trailers. The Company’s products also include air compressor and air processing/air management system; electronic and conventional air suspension systems; transmission automation; roll stability support; advanced driver assistance systems, and fleet management solutions.

ASV Holdings Company Profile

ASV Holdings, Inc. (ASV) is engaged in designing and manufacturing a range of compact track loader (CTL) and skid steer loader (SSL) equipment for construction, agricultural and forestry industries. The Company manufactures Posi-Track, rubber-tracked CTLs with multi-level suspension. CTLs are compact tracked vehicles with lift arms that functions in wet, muddy, snowy or harsh conditions and where there are slopes and grades, such as in a construction, agriculture or forestry environment. SSLs are wheeled vehicles with lift arms that can be outfitted with the same attachments as CTLs and can therefore be used in the same applications. The Company also serves as a private label original equipment manufacturer (OEM) for several manufacturers. It provides pre- and post-sale dealer support, after-sale technical support and replacement parts. The Company markets through a distribution network in North America, Australia and New Zealand under the ASV and Terex brands.

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