Analyzing Oshkosh (NYSE:OSK) & China Yuchai International (NYSE:CYD)

Oshkosh (NYSE:OSK) and China Yuchai International (NYSE:CYD) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Oshkosh and China Yuchai International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Oshkosh	1	3	10	0	2.64
China Yuchai International	0	1	0	0	2.00

Oshkosh presently has a consensus target price of $123.14, suggesting a potential downside of 0.86%. Given Oshkosh’s stronger consensus rating and higher possible upside, equities analysts clearly believe Oshkosh is more favorable than China Yuchai International.

Profitability

This table compares Oshkosh and China Yuchai International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Oshkosh	5.84%	17.22%	7.29%
China Yuchai International	N/A	N/A	N/A

Earnings and Valuation

This table compares Oshkosh and China Yuchai International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Oshkosh	$10.76 billion	0.74	$681.40 million	$9.36	13.27
China Yuchai International	$19.13 billion	0.05	$45.03 million	$1.62	15.14

Oshkosh has higher earnings, but lower revenue than China Yuchai International. Oshkosh is trading at a lower price-to-earnings ratio than China Yuchai International, indicating that it is currently the more affordable of the two stocks.

Dividends

Oshkosh pays an annual dividend of $2.04 per share and has a dividend yield of 1.6%. China Yuchai International pays an annual dividend of $0.53 per share and has a dividend yield of 2.2%. Oshkosh pays out 21.8% of its earnings in the form of a dividend. China Yuchai International pays out 32.7% 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. Oshkosh has raised its dividend for 13 consecutive years and China Yuchai International has raised its dividend for 1 consecutive years.

Insider & Institutional Ownership

92.4% of Oshkosh shares are held by institutional investors. 0.6% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Oshkosh has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

Oshkosh beats China Yuchai International on 14 of the 17 factors compared between the two stocks.

About Oshkosh

Oshkosh Corporation provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.

About China Yuchai International

China Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines for trucks, buses and passenger vehicles, marine, industrial, construction, agriculture, and generator set applications in the People’s Republic of China and internationally. It operates through two segments, Yuchai and HLGE. The Yuchai segment manufactures on- and off-road powertrain solutions and applications. The HLGE is engaged in hospitality and property development activities. The company provides diesel engines comprising 4- and 6-cylinder diesel engines, high horsepower marine diesel engines, and power generator engines; natural gas engines, methanol combustion engines, diesel power generators, diesel engine parts, and remanufacturing services; as well as plug in hybrid engines, range extenders, power generation powertrains, hybrid powertrains, integrated electric drive axel powertrains, and fuel cell systems. It also offers maintenance and retrofitting services. It distributes its engines directly to auto original equipment manufacturers, agents, and retailers. The company was founded in 1951 and is based in Singapore.