Comparing Workhorse Group (NASDAQ:WKHS) & PACCAR (NASDAQ:PCAR)

PACCAR (NASDAQ:PCAR) and Workhorse Group (NASDAQ:WKHS) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, institutional ownership, risk, valuation, earnings, profitability and analyst recommendations.

Volatility & Risk

PACCAR has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 1.4, meaning that its stock price is 40% more volatile than the S&P 500.

Dividends

PACCAR pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Workhorse Group does not pay a dividend. PACCAR pays out 20.5% of its earnings in the form of a dividend. PACCAR has increased its dividend for 9 consecutive years.

Profitability

This table compares PACCAR and Workhorse Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PACCAR 9.50% 25.94% 9.17%
Workhorse Group -6,410.76% N/A -298.88%

Valuation & Earnings

This table compares PACCAR and Workhorse Group’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PACCAR $23.50 billion 1.02 $2.20 billion $6.24 11.11
Workhorse Group $760,000.00 297.11 -$36.50 million N/A N/A

PACCAR has higher revenue and earnings than Workhorse Group.

Analyst Recommendations

This is a summary of recent ratings and target prices for PACCAR and Workhorse Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 5 7 2 0 1.79
Workhorse Group 0 0 1 0 3.00

PACCAR presently has a consensus target price of $65.25, suggesting a potential downside of 5.89%. Workhorse Group has a consensus target price of $4.00, suggesting a potential upside of 15.94%. Given Workhorse Group’s stronger consensus rating and higher possible upside, analysts clearly believe Workhorse Group is more favorable than PACCAR.

Insider and Institutional Ownership

63.3% of PACCAR shares are held by institutional investors. Comparatively, 12.1% of Workhorse Group shares are held by institutional investors. 2.3% of PACCAR shares are held by insiders. Comparatively, 5.4% of Workhorse Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

PACCAR beats Workhorse Group on 9 of the 15 factors compared between the two stocks.

PACCAR Company Profile

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Europe, and internationally. The company operates in three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks that are used for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full service leasing operations under the PacLease trade name. It also provides equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owner/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

Workhorse Group Company Profile

Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones and truck systems. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.

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