Brilliance China Automotive (OTCMKTS:BCAUY) and Oshkosh (NYSE:OSK) are both mid-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.

Profitability

This table compares Brilliance China Automotive and Oshkosh’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Brilliance China Automotive N/A N/A N/A
Oshkosh 6.12% 19.93% 9.21%

Analyst Recommendations

This is a summary of current recommendations and price targets for Brilliance China Automotive and Oshkosh, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Brilliance China Automotive 0 1 1 0 2.50
Oshkosh 1 6 7 0 2.43

Oshkosh has a consensus price target of $83.31, indicating a potential upside of 18.00%. Given Oshkosh’s higher probable upside, analysts clearly believe Oshkosh is more favorable than Brilliance China Automotive.

Institutional and Insider Ownership

0.0% of Brilliance China Automotive shares are held by institutional investors. Comparatively, 89.7% of Oshkosh shares are held by institutional investors. 1.6% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Brilliance China Automotive and Oshkosh’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Brilliance China Automotive $771.82 million 5.74 $554.15 million N/A N/A
Oshkosh $7.71 billion 0.65 $471.90 million $6.36 11.10

Brilliance China Automotive has higher earnings, but lower revenue than Oshkosh.

Dividends

Brilliance China Automotive pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Oshkosh pays an annual dividend of $1.08 per share and has a dividend yield of 1.5%. Oshkosh pays out 17.0% of its earnings in the form of a dividend. Oshkosh has increased its dividend for 4 consecutive years. Oshkosh is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Brilliance China Automotive has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500.

Summary

Oshkosh beats Brilliance China Automotive on 10 of the 15 factors compared between the two stocks.

About Brilliance China Automotive

Brilliance China Automotive Holdings Limited, an investment holding company, manufactures and sells minibuses and automotive components in the People's Republic of China. The company offers its minibuses under the JinBei and Granse brands, as well as multi-purpose vehicles under the Huasong brand. Its automotive components include mouldings, seats, axles, safety and airbag systems, interior decoration products, and engines for minibuses, sedans, sport utility vehicles, light duty trucks, etc. The company also offers sport activity vehicles. Brilliance China Automotive Holdings Limited has strategic partnerships and alliances with BMW, Toyota, Magna, Bosch, Continental, Delphi, TI Automotive, and Johnson Controls. The company was founded in 1949 and is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange.

About Oshkosh

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 services; and chassis and service parts sales. Its Defense segment provides heavy, medium, and light tactical wheeled vehicles and related services to the department of defense. 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 aircraft rescue and firefighting, snow removal, and broadcast and communication vehicles, as well as command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants for the concrete ready-mix industry; refuse collection vehicles to waste service industry; and field service vehicles and truck-mounted cranes for the construction, equipment dealer, building supply, utility, tire service, railroad, and mining 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 headquartered in Oshkosh, Wisconsin.

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