Federal Signal Corporation (NYSE: FSS) and CNH Industrial NV (NASDAQ:CNHI) are both multi-sector conglomerates companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Institutional & Insider Ownership
83.7% of Federal Signal Corporation shares are owned by institutional investors. 4.2% of Federal Signal Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for Federal Signal Corporation and CNH Industrial NV, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Federal Signal Corporation||0||0||2||0||3.00|
|CNH Industrial NV||1||4||2||0||2.14|
Federal Signal Corporation currently has a consensus target price of $20.00, indicating a potential upside of 0.10%. CNH Industrial NV has a consensus target price of $10.97, indicating a potential downside of 5.93%. Given Federal Signal Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Federal Signal Corporation is more favorable than CNH Industrial NV.
This table compares Federal Signal Corporation and CNH Industrial NV’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Federal Signal Corporation||5.20%||10.59%||5.78%|
|CNH Industrial NV||3.17%||21.59%||1.91%|
Federal Signal Corporation pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. CNH Industrial NV does not pay a dividend. Federal Signal Corporation pays out 42.4% of its earnings in the form of a dividend. Federal Signal Corporation has increased its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Federal Signal Corporation and CNH Industrial NV’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Federal Signal Corporation||$765.00 million||1.57||$84.40 million||$0.66||30.27|
|CNH Industrial NV||$24.18 billion||0.66||$2.44 billion||N/A||N/A|
CNH Industrial NV has higher revenue and earnings than Federal Signal Corporation.
Federal Signal Corporation beats CNH Industrial NV on 9 of the 14 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.
CNH Industrial NV Company Profile
CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.
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