Critical Review: WABCO (WBC) vs. Daimler (DDAIF)

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WABCO (OTCMKTS: DDAIF) and Daimler (OTCMKTS:DDAIF) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares WABCO and Daimler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WABCO 11.77% 34.37% 10.09%
Daimler 5.68% 17.47% 4.37%

Valuation & Earnings

This table compares WABCO and Daimler’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
WABCO $3.30 billion 1.97 $406.10 million $6.86 17.93
Daimler $185.63 billion 0.37 $10.53 billion $11.12 5.71

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

Analyst Ratings

This is a summary of recent ratings for WABCO and Daimler, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WABCO 0 5 10 0 2.67
Daimler 0 2 3 0 2.60

WABCO presently has a consensus price target of $158.85, suggesting a potential upside of 29.17%. Given WABCO’s stronger consensus rating and higher probable upside, equities research analysts clearly believe WABCO is more favorable than Daimler.

Institutional and Insider Ownership

96.8% of WABCO shares are held by institutional investors. Comparatively, 0.0% of Daimler shares are held by institutional investors. 0.5% of WABCO shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

WABCO has a beta of 1.82, meaning that its stock price is 82% more volatile than the S&P 500. Comparatively, Daimler has a beta of 1.58, meaning that its stock price is 58% more volatile than the S&P 500.

Summary

WABCO beats Daimler on 11 of the 14 factors compared between the two stocks.

WABCO Company Profile

WABCO Holdings Inc., together with its subsidiaries, supplies electronic, mechanical, electro-mechanical, and aerodynamic products worldwide. The company engineers, develops, manufactures, and sells braking, stability, suspension, transmission automation, and air management systems primarily for commercial vehicles. The company's products include pneumatic anti-lock braking systems, electronic braking systems, electronic stability control systems, brake controls, automated manual transmission systems, and air disc brakes; and various conventional mechanical products, such as actuators, air compressors, and air control valves for medium and heavy-duty trucks, buses, and trailers. It also offers pneumatic and hydraulic braking and control systems for off-highway vehicles; conventional braking systems; electronic and conventional air suspension systems; steering technologies; and foundation brakes, vehicle electronic stability control and roll stability support products, and advanced driver assistance systems. In addition, the company supplies electronic suspension controls and vacuum pumps to the passenger car and SUV markets, as well as provides remanufacturing services. Further, it offers replacement parts, fleet management solutions, diagnostic tools, training, and other expert services for commercial vehicle aftermarket distributors and service partners, and fleet operators. The company sells its products primarily to truck and bus original equipment manufacturers (OEMs), Trailer OEMs, and car manufacturers; commercial vehicle aftermarket distributors for replacement parts and services and commercial vehicle fleet operators for management solutions and services; and manufacturers of heavy duty off-highway vehicles in agriculture, construction, mining, and other industries. WABCO Holdings Inc. was founded in 1869 and is headquartered in Brussels, Belgium.

Daimler Company Profile

Daimler AG, together its subsidiaries, develops and manufactures passenger cars, trucks, vans, and buses in Germany and internationally. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services segments. The Mercedes-Benz Cars segment offers premium vehicles of the Mercedes-Benz brand, including the Mercedes-AMG and Mercedes-Maybach brands; and small cars under the smart and Mercedes me brands, as well as electric mobility products under the EQ brand. The Daimler Trucks segment distributes its trucks under the Mercedes-Benz, Freightliner, Western Star, FUSO, and BharatBenz brands; and buses under the Thomas Built Buses and FUSO brands. The Mercedes-Benz Vans segment primarily sells vans under the MercedesBenz and Freightliner brands. The Daimler Buses segment sells completely built-up buses under the MercedesBenz and Setra brands, as well as produces and sells bus chassis. The Daimler Financial Services segment offers tailored financing and leasing packages for end-customers and dealers; and automotive insurance brokerage, banking, and fleet management services, as well as mobility services primarily under the moovel, mytaxi, and car2go brands. The company also sells vehicle related spare parts and accessories. Daimler AG was founded in 1886 and is headquartered in Stuttgart, Germany.

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