Critical Survey: CNH Industrial (CNHI) versus Astec Industries (ASTE)

CNH Industrial (NYSE: CNHI) and Astec Industries (NASDAQ:ASTE) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, valuation, institutional ownership, dividends and profitability.

Institutional and Insider Ownership

How to Become a New Pot Stock Millionaire

21.3% of CNH Industrial shares are owned by institutional investors. Comparatively, 93.4% 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 is poised for long-term growth.

Dividends

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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for CNH Industrial and Astec Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial 0 5 8 0 2.62
Astec Industries 0 1 3 0 2.75

CNH Industrial presently has a consensus target price of $14.65, indicating a potential upside of 16.92%. Astec Industries has a consensus target price of $67.00, indicating a potential upside of 17.21%. Given Astec Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Astec Industries is more favorable than CNH Industrial.

Risk and Volatility

CNH Industrial has a beta of 1.02, indicating that its stock price is 2% more volatile than the S&P 500. Comparatively, Astec Industries has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500.

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 0.62 $295.00 million $0.48 26.10
Astec Industries $1.18 billion 1.11 $37.79 million $1.58 36.18

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.

Profitability

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
CNH Industrial 1.08% 14.58% 1.38%
Astec Industries 3.19% 5.43% 4.17%

Summary

Astec Industries beats CNH Industrial on 10 of the 16 factors compared between the two stocks.

About CNH Industrial

CNH Industrial N.V. designs, produces, markets, sells, and finances agricultural and construction equipment, trucks, commercial vehicles, and buses worldwide. The company operates in five segments: Agricultural Equipment, Construction Equipment, Commercial Vehicles, Powertrain, and Financial Services. The Agricultural Equipment segment offers farm machinery and implements, including two- and four-wheel drive tractors, crawler tractors, combines, cotton pickers, grape and sugar cane harvesters, hay and forage equipment, planting and seeding equipment, soil preparation and cultivation implements, and material handling equipment. It provides its products under the New Holland Agriculture, Case IH Agriculture, Steyr, Miller, Kongskilde, Överum, and JF brands. The Construction Equipment segment offers excavators, crawler dozers, graders, wheel and backhoe loaders, skid steer and compact track loaders, and telehandlers under the Case Construction and New Holland Construction Equipment brands. The Commercial Vehicles segment provides light, medium, and heavy vehicles for the transportation and distribution of goods under the Iveco brand; commuter buses and touring coaches under the Iveco Bus and Heuliez Bus brands; quarry and mining equipment under the Iveco Astra brand; firefighting vehicles under the Magirus brand; and vehicles for civil defense and peace-keeping missions under the Iveco Defence Vehicles brand. The Powertrain segment offers engines, transmission systems, and axles for on- and off-road applications, as well as for marine and power generation under the FPT Industrial brand. The Financial Services segment provides and administers retail financing to customers for the purchase or lease of new and used industrial equipment or vehicles, and other equipment; and wholesale financing, which consists primarily of floor plan financing to CNH Industrial dealers. The company is headquartered in London, the United Kingdom.

About Astec Industries

Astec Industries, Inc. designs, engineers, manufactures, and markets equipment and components for the road building, aggregate processing, geothermal, water, oil and gas, and wood processing industries in the United States and internationally. The company operates through Infrastructure Group, Aggregate and Mining Group, and Energy Group segments. The Infrastructure Group segment provides hot-mix asphalt plants, wood pellet plants, asphalt pavers, material transfer vehicles, soil stabilizing reclaiming machinery, milling machines, paver screeds, and related ancillary equipment. It serves asphalt producers, highway and heavy equipment contractors, wood pellet processors, and governmental agencies. The Aggregate and Mining Group segment offers jaw and cone crushers, horizontal and vertical shaft impactors, material handling products, roll rock crushers, stationary rockbreaker systems, vibrating feeders and screens, conveyors, inclined products, vertical and horizontal screens, and sand classifying and washing equipment. This segment serves distributors, open mine operators, quarry operators, port and inland terminal operators, highway and heavy equipment contractors, and governmental agencies. The Energy Group segment offers drilling rigs; diesel pump trailers for fracking and cleaning oil and gas wells; concrete plants; commercial and industrial burners; combustion control systems; heating equipment; roofing material and rubber plants; chemical, oil sands, and energy related processing products; heat transfer processing equipment; and thermal fluid storage tanks, waste heat recovery equipment, blower trucks, whole-tree pulpwood and biomass chippers, and horizontal grinders. It serves oil, gas, and water well drilling industry contractors; processors of oil, gas, and biomass for energy production; ready mix concrete producers; and contractors in the construction and demolition recycling markets. The company was founded in 1972 and is based in Chattanooga, Tennessee.

Receive News & Ratings for CNH Industrial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CNH Industrial and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply