Head-To-Head Comparison: Navistar International (NAV) versus Its Rivals

Navistar International (NYSE: NAV) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it contrast to its peers? We will compare Navistar International to related businesses based on the strength of its profitability, risk, earnings, valuation, analyst recommendations, institutional ownership and dividends.

Insider & Institutional Ownership

83.2% of Navistar International shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 21.8% of Navistar International shares are owned by insiders. Comparatively, 8.9% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Navistar International and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Navistar International $8.11 billion -$97.00 million -24.32
Navistar International Competitors $6.06 billion $48.37 million 116.56

Navistar International has higher revenue, but lower earnings than its peers. Navistar International 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.

Profitability

This table compares Navistar International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Navistar International -1.73% N/A -2.03%
Navistar International Competitors 4.23% 15.24% 4.12%

Volatility and Risk

Navistar International has a beta of 2.71, meaning that its share price is 171% more volatile than the S&P 500. Comparatively, Navistar International’s peers have a beta of 1.43, meaning that their average share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Navistar International and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Navistar International 1 7 5 0 2.31
Navistar International Competitors 171 885 964 17 2.41

Navistar International currently has a consensus target price of $37.64, suggesting a potential downside of 6.77%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.19%. Given Navistar International’s peers stronger consensus rating and higher probable upside, analysts plainly believe Navistar International has less favorable growth aspects than its peers.

Summary

Navistar International peers beat Navistar International on 8 of the 12 factors compared.

Navistar International Company Profile

Navistar International Corporation is a holding company whose principal operating entities are Navistar, Inc. and Navistar Financial Corporation (NFC). The Company’s segments include Truck, Parts, Global Operations (collectively, Manufacturing operations) and Financial Services, which consists of NFC and its foreign finance operations (collectively, Financial Services operations). The Truck segment manufactures and distributes Class 4 through 8 trucks, buses and military vehicles under the International and IC Bus brands, along with production of engines. The Parts segment supports its brands of International commercial trucks, IC buses and engines. The Global Operations segment includes operations of its subsidiary, International Industria de Motores da America do Sul Ltda. (IIAA). The Financial Services segment provides and manages retail, wholesale and lease financing of products sold by the Truck and Parts segments and their dealers.

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