Federal Signal Corporation (NYSE: FSS) and Oshkosh Corporation (NYSE:OSK) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.
Institutional and Insider Ownership
83.6% of Federal Signal Corporation shares are owned by institutional investors. Comparatively, 93.9% of Oshkosh Corporation shares are owned by institutional investors. 4.2% of Federal Signal Corporation shares are owned by insiders. Comparatively, 2.0% of Oshkosh Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a breakdown of current recommendations for Federal Signal Corporation and Oshkosh Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Signal Corporation||0||0||2||0||3.00|
Federal Signal Corporation presently has a consensus target price of $20.00, indicating a potential downside of 3.94%. Oshkosh Corporation has a consensus target price of $92.75, indicating a potential upside of 9.25%. Given Oshkosh Corporation’s higher possible upside, analysts clearly believe Oshkosh Corporation is more favorable than Federal Signal Corporation.
Valuation and Earnings
This table compares Federal Signal Corporation and Oshkosh Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Federal Signal Corporation||$707.90 million||1.76||$43.80 million||$0.73||28.52|
|Oshkosh Corporation||$6.83 billion||0.93||$285.60 million||$3.76||22.58|
Oshkosh Corporation has higher revenue and earnings than Federal Signal Corporation. Oshkosh Corporation is trading at a lower price-to-earnings ratio than Federal Signal Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares Federal Signal Corporation and Oshkosh Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Signal Corporation||5.30%||11.39%||5.64%|
Risk & Volatility
Federal Signal Corporation has a beta of 1.32, meaning that its share price is 32% more volatile than the S&P 500. Comparatively, Oshkosh Corporation has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.
Federal Signal Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Oshkosh Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. Federal Signal Corporation pays out 38.4% of its earnings in the form of a dividend. Oshkosh Corporation pays out 22.3% 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. Federal Signal Corporation has raised its dividend for 2 consecutive years and Oshkosh Corporation has raised its dividend for 2 consecutive years.
Oshkosh Corporation beats Federal Signal Corporation on 10 of the 16 factors compared between the two stocks.
Federal Signal Corporation Company Profile
Federal Signal Corporation designs, manufactures and supplies a suite of products and integrated solutions for municipal, governmental, industrial and commercial customers. The Company’s segments include the Environmental Solutions Group and the Safety and Security Systems Group. Its Environmental Solutions Group manufactures and supplies a range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks and waterblasting equipment. The products are sold to both municipal and industrial customers under the Elgin, Vactor, Guzzler and Jetstream brand names. Safety and Security Systems is a manufacturer and supplier of systems and products that law enforcement, fire rescue, emergency medical services, campuses military facilities and industrial sites use to protect people and property. It offers systems for campus and community alerting, emergency vehicles, first responder interoperable communications and industrial communications, among others.
Oshkosh Corporation Company Profile
Oshkosh Corporation is a manufacturer and marketer of access equipment, specialty vehicles and truck bodies for the primary markets of defense, concrete placement, refuse hauling, access equipment, and fire and emergency. The company’s brands include Oshkosh, JLG, Pierce, McNeilus, IMT, Frontline, Jerr-Dan, CON-E-CO and London. The Company operates through four segments: Access equipment, Defense, Fire & emergency and Commercial. The Access equipment segment provides aerial work platforms and telehandlers to position workers and materials at elevated heights. The Defense segment provides supply parts and services and wheeled vehicles. The Fire & Emergency segment manufactures and markets commercial and custom fire vehicles, simulators and emergency vehicles. The Commercial segment manufactures, markets and distributes concrete mixers, portable concrete batch plants, and vehicle and vehicle body components.
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