Head-To-Head Analysis: Ingersoll Rand (NYSE:IR) & Wabash National (NYSE:WNC)

Ingersoll Rand (NYSE:IR) and Wabash National (NYSE:WNC) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, institutional ownership, valuation, dividends, earnings and profitability.

Dividends

Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. Ingersoll Rand pays out 3.3% of its earnings in the form of a dividend. Wabash National pays out -16.6% 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. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Ingersoll Rand and Wabash National’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingersoll Rand	12.08%	12.90%	7.22%
Wabash National	-5.48%	-36.59%	-10.27%

Risk & Volatility

Ingersoll Rand has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.

Institutional and Insider Ownership

95.3% of Ingersoll Rand shares are held by institutional investors. Comparatively, 97.0% of Wabash National shares are held by institutional investors. 0.5% of Ingersoll Rand shares are held by company insiders. Comparatively, 2.8% of Wabash National shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Ingersoll Rand and Wabash National”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingersoll Rand	$7.65 billion	3.69	$581.40 million	$2.43	29.95
Wabash National	$1.54 billion	0.32	$211.45 million	($1.93)	-6.28

Ingersoll Rand has higher revenue and earnings than Wabash National. Wabash National is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for Ingersoll Rand and Wabash National, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingersoll Rand	0	3	5	0	2.62
Wabash National	1	1	2	0	2.25

Ingersoll Rand presently has a consensus target price of $96.14, suggesting a potential upside of 32.10%. Wabash National has a consensus target price of $21.67, suggesting a potential upside of 78.74%. Given Wabash National’s higher possible upside, analysts clearly believe Wabash National is more favorable than Ingersoll Rand.

Summary

Ingersoll Rand beats Wabash National on 10 of the 16 factors compared between the two stocks.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.

About Wabash National

Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.