Oshkosh (OSK) vs. Honda Motor (HMC) Critical Survey
Oshkosh (NYSE: HMC) and Honda Motor (NYSE:HMC) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
This table compares Oshkosh and Honda Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and target prices for Oshkosh and Honda Motor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Oshkosh currently has a consensus price target of $90.57, indicating a potential upside of 26.23%. Honda Motor has a consensus price target of $42.00, indicating a potential upside of 46.85%. Given Honda Motor’s stronger consensus rating and higher possible upside, analysts clearly believe Honda Motor is more favorable than Oshkosh.
Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. Honda Motor pays an annual dividend of $0.57 per share and has a dividend yield of 2.0%. Oshkosh pays out 22.6% of its earnings in the form of a dividend. Honda Motor pays out 15.7% 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. Oshkosh has raised its dividend for 3 consecutive years and Honda Motor has raised its dividend for 4 consecutive years. Honda Motor is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
Oshkosh has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500. Comparatively, Honda Motor has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Valuation & Earnings
This table compares Oshkosh and Honda Motor’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Oshkosh||$6.83 billion||0.77||$285.60 million||$4.25||16.88|
|Honda Motor||$138.71 billion||0.37||$9.53 billion||$3.62||7.90|
Honda Motor has higher revenue and earnings than Oshkosh. Honda Motor is trading at a lower price-to-earnings ratio than Oshkosh, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
89.5% of Oshkosh shares are held by institutional investors. Comparatively, 2.1% of Honda Motor shares are held by institutional investors. 2.0% of Oshkosh shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Oshkosh beats Honda Motor on 9 of the 17 factors compared between the two stocks.
Oshkosh Company Profile
Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation; and chassis and service parts sales. Its Defense segment provides severe-duty, and heavy-and medium-payload tactical trucks for the department of defense, such as hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units and light-payload tactical vehicles. The company's Fire & Emergency segment offers custom and commercial fire apparatus; and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides snow removal vehicles; broadcast and communication vehicles comprising electronic field production trailers, and satellite and electronic news gathering vehicles; and command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants and vehicle components, and refuse collection vehicles to concrete ready-mix and waste services industries. Oshkosh Corporation provides its products through direct sales representatives, dealers, and distributors. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is based in Oshkosh, Wisconsin.
Honda Motor Company Profile
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces sports models, including trial and moto-cross racing vehicles; business and commuter models; all-terrain vehicles; and side-by-side models. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles, as well as vehicles powered with alternative fuel, such as ethanol, battery electric, and fuel cell vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as other financial services comprising wholesale financing to dealers. The Power Product and Other Businesses segment manufactures and sells various power products consisting of general-purpose engines, generators, water pumps, lawn mowers, riding mowers, robotic mowers, brush cutters, tillers, snow blowers, outboard marine engines, and walking assist devices, as well as portable battery inverter power sources. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through overseas operations, independent distributors, and licensees. Honda Motor Co., Ltd. sells its products through independent retail dealers. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.
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