PACCAR (NASDAQ:PCAR) vs. The Competition Head-To-Head Comparison

PACCAR (NASDAQ: PCAR) is one of 13 public companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its peers? We will compare PACCAR to similar businesses based on the strength of its risk, dividends, institutional ownership, earnings, valuation, profitability and analyst recommendations.

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 3.97% 13.55% 3.92%

Volatility and Risk

PACCAR has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, PACCAR’s peers have a beta of 1.44, meaning that their average stock price is 44% more volatile than the S&P 500.

Insider & Institutional Ownership

62.3% of PACCAR shares are held by institutional investors. Comparatively, 81.8% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 2.6% of PACCAR shares are held by company insiders. Comparatively, 9.5% 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.

Earnings & Valuation

This table compares PACCAR and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PACCAR $17.03 billion $521.70 million 18.23
PACCAR Competitors $7.13 billion $64.84 million 164.62

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for PACCAR and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 14 7 0 2.27
PACCAR Competitors 170 875 944 17 2.40

PACCAR currently has a consensus price target of $74.67, suggesting a potential upside of 5.05%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 5.96%. Given PACCAR’s peers stronger consensus rating and higher probable upside, analysts plainly believe PACCAR has less favorable growth aspects than its peers.

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 1.2% and pay out 33.5% 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.

Summary

PACCAR peers beat PACCAR on 8 of the 15 factors compared.

About PACCAR

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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