When faced with the decision between Oshkosh (NYSE:OSK) and Rivian Automotive (NASDAQ:RIVN), investors often grapple with determining the superior stock. Despite both companies operating in the mid-cap auto/tires/trucks sector, they differ significantly in terms of risk, profitability, and valuation. This piece aims to provide a comprehensive comparison of the two entities to aid in making an informed decision.
Risk and Volatility
Oshkosh exhibits a beta of 1.29, resulting in its share price being 29% more volatile than the S&P 500. Conversely, Rivian Automotive’s beta of 1.88 signifies its share price is 88% more volatile than the S&P 500, indicating a higher level of risk.
Insider & Institutional Ownership
The degree of institutional ownership is a crucial consideration in stock evaluation. Oshkosh maintains notably higher institutional ownership at 92.4% in contrast to Rivian Automotive’s 66.3%. Furthermore, the percentage of company insiders owning shares is greater within Oshkosh at 0.6% compared to Rivian Automotive’s 2.3%. These figures indicate that institutional investors exhibit more confidence in Oshkosh’s long-term growth potential.
Analyst Ratings
Oshkosh receives 6 ‘Hold’ ratings and 11 ‘Buy’ ratings from analysts, with a consensus price target of $117.94, suggesting a potential downside of 7.24%. In contrast, Rivian Automotive garners 9 ‘Hold’ ratings and 13 ‘Buy’ ratings, with a consensus price target of $19.87, indicating a potential upside of 96.73%. These ratings accentuate analysts’ positive outlook on Rivian Automotive.
Profitability
Across metrics such as net margins, return on equity, and return on assets, Oshkosh surpasses Rivian Automotive in terms of profitability. Oshkosh’s net margins, return on equity, and return on assets stand at 6.19%, 18.75%, and 7.67% respectively, while Rivian Automotive records negative figures at -122.51%, -45.97%, and -29.56%.
Valuation & Earnings
In comparison to Rivian Automotive, Oshkosh yields higher revenue and earnings. Additionally, Rivian Automotive trades at a lower price-to-earnings ratio, positioning it as a more affordable option when juxtaposed with Oshkosh.
It is evident that Oshkosh outperforms Rivian Automotive in 9 out of the 14 factors examined. This comprehensive analysis furnishes essential insights for investors contemplating investment in these entities.
About Oshkosh
Oshkosh Corporation is a global provider of purpose-built vehicles and equipment with a history dating back to 1917. The company operates within three main segments: Access, Defense, and Vocational, catering to diverse industry needs.
About Rivian Automotive
Rivian Automotive, Inc. is a prominent entity in the electric vehicle industry, offering a range of consumer vehicles and services alongside a proprietary fleet management subscription platform.
In conclusion, the choice between Oshkosh and Rivian Automotive necessitates a meticulous evaluation of various financial and operational factors. This comparison aims to furnish valuable insights for investors seeking to make an informed choice between these two mid-cap auto/tires/trucks companies.