PACCAR (NASDAQ:PCAR) and Greenkraft (OTCMKTS:GKIT) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Insider & Institutional Ownership
62.5% of PACCAR shares are held by institutional investors. 2.3% of PACCAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for PACCAR and Greenkraft, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PACCAR presently has a consensus price target of $66.98, suggesting a potential downside of 6.23%. Given PACCAR’s higher possible upside, analysts clearly believe PACCAR is more favorable than Greenkraft.
Risk and Volatility
PACCAR has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500. Comparatively, Greenkraft has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
PACCAR pays an annual dividend of $1.28 per share and has a dividend yield of 1.8%. Greenkraft does not pay a dividend. PACCAR pays out 20.5% of its earnings in the form of a dividend. PACCAR has raised its dividend for 9 consecutive years.
Earnings and Valuation
This table compares PACCAR and Greenkraft’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PACCAR||$23.50 billion||1.05||$2.20 billion||$6.24||11.45|
|Greenkraft||$1.15 million||2.38||-$1.03 million||N/A||N/A|
PACCAR has higher revenue and earnings than Greenkraft.
This table compares PACCAR and Greenkraft’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PACCAR beats Greenkraft on 11 of the 14 factors compared between the two stocks.
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.
Greenkraft, Inc. manufactures and distributes automotive products for distribution companies, dealers, and others in the United States. The company offers commercial forward cabin trucks that run on alternative fuels, such as compressed natural gas or liquefied propane gas. It also manufactures and sells alternative fuel systems; and converts petroleum-based fuel vehicles to run on alternative fuels, such as CNG or LPG. The company has strategic partnership with CEE, LLC and G&K Automotive Conversion Inc. for research and development activities, as well as to test its engines prior to applying for the CARB and EPA certifications. Greenkraft, Inc. is headquartered in Santa Ana, California.
Receive News & Ratings for PACCAR Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PACCAR and related companies with MarketBeat.com's FREE daily email newsletter.