Critical Review: CNH Industrial NV (CNHI) vs. Its Competitors

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

Valuation & Earnings

This table compares CNH Industrial NV and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
CNH Industrial NV N/A N/A 40.19
CNH Industrial NV Competitors $4.89 billion $80.18 million 164.27

CNH Industrial NV’s rivals have higher revenue and earnings than CNH Industrial NV. CNH Industrial NV is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

CNH Industrial NV pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. CNH Industrial NV pays out 37.5% 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 33.0% of their earnings in the form of a dividend. CNH Industrial NV lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares CNH Industrial NV and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial NV 0.54% 4.78% 0.30%
CNH Industrial NV Competitors 4.32% 13.60% 4.34%

Volatility & Risk

CNH Industrial NV has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500. Comparatively, CNH Industrial NV’s rivals have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for CNH Industrial NV and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial NV 1 3 4 0 2.38
CNH Industrial NV Competitors 169 875 949 17 2.40

CNH Industrial NV currently has a consensus price target of $11.27, suggesting a potential downside of 12.39%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.03%. Given CNH Industrial NV’s rivals stronger consensus rating and higher probable upside, analysts plainly believe CNH Industrial NV has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

81.2% of shares of all “Heavy Machinery & Vehicles” companies are held by institutional investors. 8.3% 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.

Summary

CNH Industrial NV rivals beat CNH Industrial NV on 12 of the 13 factors compared.

About CNH Industrial NV

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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