Oshkosh (NYSE:OSK) versus Continental (OTCMKTS:CTTAY) Financial Contrast

Continental (OTCMKTS:CTTAY) and Oshkosh (NYSE:OSK) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Institutional and Insider Ownership

0.0% of Continental shares are owned by institutional investors. Comparatively, 92.4% of Oshkosh shares are owned by institutional investors. 0.6% of Oshkosh shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Continental has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Continental and Oshkosh, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental	0	3	2	1	2.67
Oshkosh	1	4	10	0	2.60

Oshkosh has a consensus price target of $144.25, suggesting a potential upside of 16.13%. Given Oshkosh’s higher possible upside, analysts clearly believe Oshkosh is more favorable than Continental.

Dividends

Continental pays an annual dividend of $0.20 per share and has a dividend yield of 3.1%. Oshkosh pays an annual dividend of $2.04 per share and has a dividend yield of 1.6%. Continental pays out 23.0% of its earnings in the form of a dividend. Oshkosh pays out 20.5% 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. Oshkosh has increased its dividend for 13 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Continental	4.54%	13.20%	4.34%
Oshkosh	6.25%	16.70%	7.24%

Earnings & Valuation

This table compares Continental and Oshkosh”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Continental	$42.98 billion	0.30	$1.26 billion	$0.87	7.53
Oshkosh	$10.76 billion	0.74	$681.40 million	$9.96	12.47

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

Summary

Oshkosh beats Continental on 13 of the 18 factors compared between the two stocks.

About Continental

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

About Oshkosh

Oshkosh Corporation provides purpose-built vehicles and equipment worldwide. The company operates through three segments: Access, Defense, and Vocational segment. Its Access Equipment segment design and manufacture aerial work platform and telehandlers for use in construction, industrial, and maintenance applications; offers financing and leasing solutions including rental fleet loans, leases, and floor plan and retail financing; and towing and recovery equipment, which includes carriers, wreckers, and rotators, as well as provides equipment installation and sale of chassis and service parts. The Defense segment engages in the manufacture and sale of heavy, medium, and light tactical wheeled vehicles and related services for department of defense. Its Vocational segment offers custom and commercial firefighting equipment, fire apparatus, and emergency vehicles, including pumpers, aerial platform, ladder and tiller trucks, and tankers; light, medium, and heavy-duty rescue vehicles; and wildland rough terrain response, bomb squad, hazardous materials control vehicles, mobile command and control centers, and other emergency response vehicles. Additionally, this segment produces and sells custom and commercial firefighting vehicles, as well as command vehicles, ARFF vehicles; design and manufacture refuse collection vehicles for waste services industry; front discharge concrete mixers for the concrete ready-mix industry; and field service vehicles and truck-mounted cranes for construction, equipment dealer, building supply, utility, tire service, railroad, and mining industries. Further, the company provides its products through direct sales representatives, dealers, and distributors. Oshkosh Corporation was formerly known as Oshkosh Truck Corporation. The company was founded in 1917 and is headquartered in Oshkosh, Wisconsin.