Head-To-Head Survey: CNH Industrial (CNHI) vs. Astec Industries (ASTE)
CNH Industrial (NYSE: CNHI) and Astec Industries (NASDAQ:ASTE) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, profitability and earnings.
Insider and Institutional Ownership
21.3% of CNH Industrial shares are owned by institutional investors. Comparatively, 93.1% of Astec Industries shares are owned by institutional investors. 1.7% of Astec Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
CNH Industrial has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500. Comparatively, Astec Industries has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.
This is a breakdown of current recommendations and price targets for CNH Industrial and Astec Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CNH Industrial currently has a consensus price target of $14.95, suggesting a potential upside of 21.45%. Astec Industries has a consensus price target of $67.00, suggesting a potential upside of 19.62%. Given CNH Industrial’s higher probable upside, analysts clearly believe CNH Industrial is more favorable than Astec Industries.
Earnings & Valuation
This table compares CNH Industrial and Astec Industries’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNH Industrial||$27.36 billion||0.61||$295.00 million||$0.48||25.65|
|Astec Industries||$1.18 billion||1.09||$37.79 million||$1.58||35.45|
CNH Industrial has higher revenue and earnings than Astec Industries. CNH Industrial is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.
CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. Astec Industries pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. CNH Industrial pays out 25.0% of its earnings in the form of a dividend. Astec Industries pays out 25.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CNH Industrial is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares CNH Industrial and Astec Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Astec Industries beats CNH Industrial on 9 of the 16 factors compared between the two stocks.
About CNH Industrial
CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.
About Astec Industries
Astec Industries, Inc. designs, engineers, manufactures and markets equipment and components used primarily in road building and related construction activities. Its segments include Infrastructure Group, Aggregate and Mining Group and Energy Group. The Infrastructure Group segment is made up of five business units, including Astec, Inc., Roadtec, Inc., Carlson Paving Products, Inc., Astec Mobile Machinery GmbH and Astec Australia Pty Ltd. Its Aggregate and Mining Group consists of eight business units that are focused on designing and manufacturing heavy processing equipment, as well as servicing and supplying parts for the aggregate, metallic mining, recycling, ports and bulk handling markets. Its Energy Group includes five business units focused on supplying heavy equipment, such as heaters, drilling rigs, concrete plants, wood chippers and grinders, pump trailers, storage equipment and related parts to the oil and gas, construction and water well industries.
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