PACCAR (NASDAQ: PCAR) is one of 14 public companies in the “Heavy Machinery & Vehicles” industry, but how does it weigh in compared to its peers? We will compare PACCAR to related businesses based on the strength of its profitability, analyst recommendations, risk, institutional ownership, dividends, earnings and valuation.

Insider and Institutional Ownership

62.4% of PACCAR shares are held by institutional investors. Comparatively, 82.3% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 2.6% of PACCAR shares are held by company insiders. Comparatively, 8.3% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk & Volatility

PACCAR has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500. Comparatively, PACCAR’s peers have a beta of 1.44, suggesting that their average stock price is 44% more volatile than the S&P 500.

Profitability

This table compares PACCAR and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PACCAR 7.61% 18.77% 6.33%
PACCAR Competitors 4.12% 13.93% 4.02%

Dividends

PACCAR pays an annual dividend of $1.00 per share and has a dividend yield of 1.4%. PACCAR pays out 25.6% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 35.8% of their earnings in the form of a dividend. PACCAR is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares PACCAR and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PACCAR $17.03 billion $521.70 million 17.86
PACCAR Competitors $6.06 billion $48.37 million 13.23

PACCAR has higher revenue and earnings than its peers. PACCAR is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for PACCAR and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 13 8 0 2.32
PACCAR Competitors 171 884 962 17 2.41

PACCAR currently has a consensus price target of $75.17, indicating a potential upside of 7.92%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.15%. Given PACCAR’s higher possible upside, equities analysts clearly believe PACCAR is more favorable than its peers.

Summary

PACCAR beats its peers on 9 of the 15 factors compared.

PACCAR Company Profile

PACCAR Inc (PACCAR) is a technology company. The Company’s segments include Truck, Parts and Financial Services. The Truck segment includes the design, manufacture and distribution of light-, medium- and heavy-duty commercial trucks. The Company’s trucks are marketed under the Kenworth, Peterbilt and DAF nameplates. It also manufactures engines, primarily for use in the Company’s trucks, at its facilities in Columbus, Mississippi; Eindhoven, the Netherlands, and Ponta Grossa, Brazil. The Parts segment includes the distribution of aftermarket parts for trucks and related commercial vehicles. The Financial Services segment includes finance and leasing products and services provided to customers and dealers. Its Other business includes the manufacturing and marketing of industrial winches. The Company operates in Australia and Brazil and sells trucks and parts to customers in Asia, Africa, Middle East and South America.

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