Head-To-Head Analysis: Terex Corporation (TEX) & Navistar International Corporation (NAV)
Terex Corporation (NYSE: TEX) and Navistar International Corporation (NYSE:NAV) are both mid-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitability and dividends.
Insider and Institutional Ownership
97.4% of Terex Corporation shares are held by institutional investors. Comparatively, 84.0% of Navistar International Corporation shares are held by institutional investors. 2.5% of Terex Corporation shares are held by company insiders. Comparatively, 21.8% of Navistar International Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility and Risk
Terex Corporation has a beta of 1.84, meaning that its share price is 84% more volatile than the S&P 500. Comparatively, Navistar International Corporation has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500.
Terex Corporation pays an annual dividend of $0.32 per share and has a dividend yield of 0.7%. Navistar International Corporation does not pay a dividend. Terex Corporation pays out -50.8% of its earnings in the form of a dividend. Navistar International Corporation has raised its dividend for 3 consecutive years.
Valuation and Earnings
This table compares Terex Corporation and Navistar International Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Terex Corporation||$4.22 billion||0.93||$152.10 million||($0.63)||-69.54|
|Navistar International Corporation||$8.04 billion||0.50||$267.00 million||($1.66)||-24.61|
Navistar International Corporation has higher revenue and earnings than Terex Corporation. Terex Corporation is trading at a lower price-to-earnings ratio than Navistar International Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Terex Corporation and Navistar International Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Navistar International Corporation||-1.73%||N/A||-2.03%|
This is a breakdown of recent ratings and target prices for Terex Corporation and Navistar International Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Navistar International Corporation||1||7||3||0||2.18|
Terex Corporation presently has a consensus price target of $37.83, indicating a potential downside of 13.64%. Navistar International Corporation has a consensus price target of $31.80, indicating a potential downside of 22.17%. Given Terex Corporation’s stronger consensus rating and higher probable upside, equities analysts plainly believe Terex Corporation is more favorable than Navistar International Corporation.
Terex Corporation beats Navistar International Corporation on 10 of the 16 factors compared between the two stocks.
Terex Corporation Company Profile
Terex Corporation is a manufacturer of lifting and material processing products and services that deliver lifecycle solutions. The Company has three business segments: Aerial Work Platforms (AWP), Cranes and Materials Processing (MP). It delivers lifecycle solutions to a range of industries, including the construction, infrastructure, manufacturing, shipping, utility, quarrying and mining industries. The AWP segment designs, manufactures, services and markets aerial work platform equipment, telehandlers and light towers. The AWP segment’s products are used by its customers to construct and maintain industrial, commercial and residential buildings and facilities, and for other commercial operations, as well as in a range of infrastructure projects. The Cranes segment’s products are used by its customers for construction and manufacturing facilities, among others. The MP segment’s products are used by its customers in construction, infrastructure and recycling projects.
Navistar International Corporation Company Profile
Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.
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