Wabtec (WAB) Competitors

PACCAR (NASDAQ:PCAR) and Wabtec (NYSE:WAB) are both large-cap construction & farm machinery & heavy trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends, media sentiment and earnings.

Which has more risk & volatility, PCAR or WAB?

PACCAR has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Wabtec has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Which has preferable earnings & valuation, PCAR or WAB?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66B	1.52	$4.16B	$6.60	14.74
Wabtec	$10.39B	3.52	$1.06B	$6.38	33.45

Do insiders and institutionals hold more shares of PCAR or WAB?

64.9% of PACCAR shares are held by institutional investors. Comparatively, 91.7% of Wabtec shares are held by institutional investors. 2.0% of PACCAR shares are held by insiders. Comparatively, 1.1% of Wabtec shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Is PCAR or WAB more profitable?

PACCAR has a net margin of 10.73% compared to Wabtec's net margin of 10.53%. PACCAR's return on equity of 20.79% beat Wabtec's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
PACCAR	10.73%	20.79%	8.76%
Wabtec	10.53%	13.35%	7.33%

Do analysts prefer PCAR or WAB?

PACCAR presently has a consensus price target of $104.59, suggesting a potential upside of 7.52%. Wabtec has a consensus price target of $216.00, suggesting a potential upside of 1.20%. Given PACCAR's higher possible upside, equities research analysts plainly believe PACCAR is more favorable than Wabtec.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	1 Sell rating(s)	7 Hold rating(s)	4 Buy rating(s)	1 Strong Buy rating(s)	2.38
Wabtec	0 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.67

Does the media refer more to PCAR or WAB?

In the previous week, Wabtec had 1 more articles in the media than PACCAR. MarketBeat recorded 17 mentions for Wabtec and 16 mentions for PACCAR. PACCAR's average media sentiment score of 1.16 beat Wabtec's score of 0.25 indicating that PACCAR is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
PACCAR	12 Very Positive mention(s)	0 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Wabtec	2 Very Positive mention(s)	3 Positive mention(s)	11 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Is PCAR or WAB a better dividend stock?

PACCAR pays an annual dividend of $1.32 per share and has a dividend yield of 1.4%. Wabtec pays an annual dividend of $1.00 per share and has a dividend yield of 0.5%. PACCAR pays out 20.0% of its earnings in the form of a dividend. Wabtec pays out 15.7% 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. PACCAR has increased its dividend for 5 consecutive years and Wabtec has increased its dividend for 4 consecutive years. PACCAR is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

PACCAR beats Wabtec on 12 of the 19 factors compared between the two stocks.