Head-To-Head Contrast: PACCAR (PCAR) and Its Competitors

PACCAR (NASDAQ: PCAR) is one of 15 public companies in the “Heavy Machinery & Vehicles” industry, but how does it compare to its competitors? We will compare PACCAR to similar companies based on the strength of its institutional ownership, analyst recommendations, dividends, earnings, risk, profitability and valuation.

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 1.3% and pay out 33.7% of their earnings in the form of a dividend. PACCAR is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

62.4% of PACCAR shares are held by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 2.6% of PACCAR shares are held by company insiders. Comparatively, 8.9% of shares of all “Heavy Machinery & Vehicles” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for PACCAR and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 1 13 8 0 2.32
PACCAR Competitors 171 886 965 17 2.41

PACCAR currently has a consensus target price of $75.17, indicating a potential upside of 5.54%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 7.31%. Given PACCAR’s competitors stronger consensus rating and higher probable upside, analysts clearly believe PACCAR has less favorable growth aspects than its competitors.

Profitability

This table compares PACCAR and its competitors’ 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 3.98% 12.71% 3.88%

Volatility and Risk

PACCAR has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, PACCAR’s competitors have a beta of 1.43, meaning that their average share price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares PACCAR and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
PACCAR $17.03 billion $521.70 million 18.26
PACCAR Competitors $6.06 billion $48.37 million 117.21

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

Summary

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

PACCAR Company Profile

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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