Contrasting Oshkosh (OSK) & Tesla (TSLA)

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Oshkosh (NYSE: OSK) and Tesla (NASDAQ:TSLA) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Volatility and Risk

Oshkosh has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Tesla has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Valuation and Earnings

This table compares Oshkosh and Tesla’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Oshkosh $6.83 billion 0.75 $285.60 million $4.25 16.20
Tesla $11.76 billion 5.02 -$1.96 billion ($11.48) -30.27

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Oshkosh and Tesla, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Oshkosh 0 4 9 0 2.69
Tesla 11 10 10 0 1.97

Oshkosh presently has a consensus target price of $94.17, indicating a potential upside of 36.77%. Tesla has a consensus target price of $297.85, indicating a potential downside of 14.29%. Given Oshkosh’s stronger consensus rating and higher probable upside, analysts clearly believe Oshkosh is more favorable than Tesla.

Dividends

Oshkosh pays an annual dividend of $0.96 per share and has a dividend yield of 1.4%. Tesla does not pay a dividend. Oshkosh pays out 22.6% of its earnings in the form of a dividend. Oshkosh has raised its dividend for 3 consecutive years.

Insider and Institutional Ownership

90.3% of Oshkosh shares are held by institutional investors. Comparatively, 60.7% of Tesla shares are held by institutional investors. 2.0% of Oshkosh shares are held by insiders. Comparatively, 22.8% of Tesla shares are held by 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.

Profitability

This table compares Oshkosh and Tesla’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Oshkosh 5.21% 18.63% 8.36%
Tesla -18.77% -40.72% -8.34%

Summary

Oshkosh beats Tesla on 12 of the 17 factors compared between the two stocks.

Oshkosh Company Profile

Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation; and chassis and service parts sales. Its Defense segment provides severe-duty, and heavy-and medium-payload tactical trucks for the department of defense, such as hauling tanks, missile systems, ammunition, fuel, troops, and cargo for combat units and light-payload tactical vehicles. The company's Fire & Emergency segment offers custom and commercial fire apparatus; and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides snow removal vehicles; broadcast and communication vehicles comprising electronic field production trailers, and satellite and electronic news gathering vehicles; and command trucks, and military simulator shelters and trailers. Its Commercial segment offers front-and rear-discharge concrete mixers, portable and stationary concrete batch plants and vehicle components, and refuse collection vehicles to concrete ready-mix and waste services industries. Oshkosh Corporation provides its products through direct sales representatives, dealers, and distributors. The company was formerly known as Oshkosh Truck Corporation and changed its name to Oshkosh Corporation in February 2008. Oshkosh Corporation was founded in 1917 and is based in Oshkosh, Wisconsin.

Tesla Company Profile

Tesla, Inc. designs, develops, manufactures, and sells electric vehicles, and energy generation and storage systems in the United States, China, Norway, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers sedans and sport utility vehicles. It also provides electric vehicle powertrain components and systems to other manufacturers; and services for electric vehicles through its company-owned service centers, Service Plus locations, and Tesla mobile technicians. This segment sells its products through a network of company-owned stores and galleries. The Energy Generation and Storage segment offers energy storage products, such as rechargeable lithium-ion battery systems for use in homes, commercial facilities, and utility grids; designs, manufactures, installs, maintains, leases, and sells solar energy systems to residential and commercial customers; and sell renewable energy to residential and commercial customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was founded in 2003 and is headquartered in Palo Alto, California.

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