Head-To-Head Analysis: CNH Industrial (CNHI) vs. Federal Signal (FSS)
CNH Industrial (NYSE: CNHI) and Federal Signal (NYSE:FSS) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, profitability, dividends, analyst recommendations, risk, valuation and institutional ownership.
Insider & Institutional Ownership
18.2% of CNH Industrial shares are owned by institutional investors. Comparatively, 84.1% of Federal Signal shares are owned by institutional investors. 4.2% of Federal Signal shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares CNH Industrial and Federal Signal’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares CNH Industrial and Federal Signal’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|CNH Industrial||$24.87 billion||0.81||-$252.00 million||$0.32||46.00|
|Federal Signal||$707.90 million||1.72||$43.80 million||$0.73||27.79|
Federal Signal has lower revenue, but higher earnings than CNH Industrial. Federal Signal is trading at a lower price-to-earnings ratio than CNH Industrial, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for CNH Industrial and Federal Signal, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
CNH Industrial currently has a consensus target price of $14.63, indicating a potential downside of 0.62%. Federal Signal has a consensus target price of $20.00, indicating a potential downside of 1.43%. Given CNH Industrial’s higher possible upside, equities analysts clearly believe CNH Industrial is more favorable than Federal Signal.
Risk and Volatility
CNH Industrial has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Federal Signal has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.
CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.8%. Federal Signal pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. CNH Industrial pays out 37.5% of its earnings in the form of a dividend. Federal Signal pays out 38.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Federal Signal beats CNH Industrial on 10 of the 16 factors compared between the two stocks.
About CNH Industrial
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.
About Federal Signal
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.
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