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

Dividends

CNH Industrial N.V. pays an annual dividend of $0.12 per share and has a dividend yield of 1.0%. CNH Industrial N.V. 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 35.8% of their earnings in the form of a dividend. CNH Industrial N.V. lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares CNH Industrial N.V. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNH Industrial N.V. 1.66% 14.63% 1.41%
CNH Industrial N.V. Competitors 4.06% 13.41% 3.96%

Institutional & Insider Ownership

19.6% of CNH Industrial N.V. shares are owned by institutional investors. Comparatively, 81.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 8.3% of shares of all “Heavy Machinery & Vehicles” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares CNH Industrial N.V. and its peers gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
CNH Industrial N.V. $24.87 billion -$252.00 million 39.16
CNH Industrial N.V. Competitors $6.06 billion $48.37 million 166.95

CNH Industrial N.V. has higher revenue, but lower earnings than its peers. CNH Industrial N.V. 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.

Risk and Volatility

CNH Industrial N.V. has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, CNH Industrial N.V.’s peers have a beta of 1.45, meaning that their average share price is 45% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for CNH Industrial N.V. and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNH Industrial N.V. 1 3 4 0 2.38
CNH Industrial N.V. Competitors 171 876 950 17 2.40

CNH Industrial N.V. currently has a consensus target price of $11.27, suggesting a potential downside of 10.08%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 8.76%. Given CNH Industrial N.V.’s peers stronger consensus rating and higher probable upside, analysts plainly believe CNH Industrial N.V. has less favorable growth aspects than its peers.

Summary

CNH Industrial N.V. peers beat CNH Industrial N.V. on 12 of the 15 factors compared.

About CNH Industrial N.V.

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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