Daimler (OTCMKTS:DDAIF) and Oshkosh (NYSE:OSK) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.6%. Daimler does not pay a dividend. Oshkosh pays out 22.6% of its earnings in the form of a dividend. Oshkosh has raised its dividend for 3 consecutive years.

Volatility and Risk

Daimler has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.48, suggesting that its share price is 48% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Daimler shares are held by institutional investors. Comparatively, 89.3% of Oshkosh shares are held by institutional investors. 1.6% of Oshkosh shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Daimler and Oshkosh, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Daimler 0 3 0 0 2.00
Oshkosh 0 7 8 0 2.53

Oshkosh has a consensus price target of $90.57, indicating a potential upside of 47.20%. Given Oshkosh’s stronger consensus rating and higher possible upside, analysts clearly believe Oshkosh is more favorable than Daimler.

Valuation and Earnings

This table compares Daimler and Oshkosh’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Daimler $185.63 billion 0.35 $10.53 billion $11.12 5.53
Oshkosh $6.83 billion 0.66 $285.60 million $4.25 14.48

Daimler has higher revenue and earnings than Oshkosh. Daimler is trading at a lower price-to-earnings ratio than Oshkosh, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Daimler and Oshkosh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Daimler 5.68% 17.47% 4.37%
Oshkosh 5.44% 19.19% 8.76%

Summary

Oshkosh beats Daimler on 11 of the 17 factors compared between the two stocks.

Daimler Company Profile

Daimler AG, together its subsidiaries, develops and manufactures passenger cars, trucks, vans, and buses in Germany and internationally. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services segments. The Mercedes-Benz Cars segment offers premium vehicles of the Mercedes-Benz brand, including the Mercedes-AMG and Mercedes-Maybach brands; and small cars under the smart and Mercedes me brands, as well as electric mobility products under the EQ brand. The Daimler Trucks segment distributes its trucks under the Mercedes-Benz, Freightliner, Western Star, FUSO, and BharatBenz brands; and buses under the Thomas Built Buses and FUSO brands. The Mercedes-Benz Vans segment primarily sells vans under the MercedesBenz and Freightliner brands. The Daimler Buses segment sells completely built-up buses under the MercedesBenz and Setra brands, as well as produces and sells bus chassis. The Daimler Financial Services segment offers tailored financing and leasing packages for end-customers and dealers; and automotive insurance brokerage, banking, and fleet management services, as well as mobility services primarily under the moovel, mytaxi, and car2go brands. The company also sells vehicle related spare parts and accessories. Daimler AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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.

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