Reviewing Ingersoll Rand (NYSE:IR) & Wabash National (NYSE:WNC)

Wabash National (NYSE:WNC) and Ingersoll Rand (NYSE:IR) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, dividends, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Wabash National and Ingersoll Rand”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabash National	$1.54 billion	0.32	$211.45 million	($1.93)	-6.28
Ingersoll Rand	$7.65 billion	3.69	$581.40 million	$2.43	29.95

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Wabash National and Ingersoll Rand, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabash National	1	1	2	0	2.25
Ingersoll Rand	0	3	5	0	2.62

Wabash National currently has a consensus price target of $21.67, suggesting a potential upside of 78.74%. Ingersoll Rand has a consensus price target of $96.14, suggesting a potential upside of 32.10%. Given Wabash National’s higher possible upside, research analysts plainly believe Wabash National is more favorable than Ingersoll Rand.

Profitability

This table compares Wabash National and Ingersoll Rand’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wabash National	-5.48%	-36.59%	-10.27%
Ingersoll Rand	12.08%	12.90%	7.22%

Insider & Institutional Ownership

97.0% of Wabash National shares are owned by institutional investors. Comparatively, 95.3% of Ingersoll Rand shares are owned by institutional investors. 2.8% of Wabash National shares are owned by insiders. Comparatively, 0.5% of Ingersoll Rand shares are owned 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.

Dividends

Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Wabash National pays out -16.6% of its earnings in the form of a dividend. Ingersoll Rand pays out 3.3% 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. Wabash National is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Wabash National has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.15, suggesting that its stock price is 15% more volatile than the S&P 500.

Summary

Ingersoll Rand beats Wabash National on 10 of the 16 factors compared between the two stocks.

About Wabash National

Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.

About Ingersoll Rand

Ingersoll Rand Inc. provides various mission-critical air, gas, liquid, and solid flow creation technologies services and solutions worldwide. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services under the under the Ingersoll Rand, Gardner Denver, Nash, CompAir, Elmo Rietschle brands, etc. The Precision and Science Technologies segment designs, manufactures, and markets diaphragm, piston, water-powered, peristaltic, gear, vane, progressive cavity, and syringe pumps; and gas boosters, hydrogen compression systems, automated liquid handling systems, odorant injection systems, controls, software, and other related components and accessories for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management, and flow control in specialized or critical applications under the Air Dimensions, Albin, ARO, Dosatron, Haskel, Ingersoll Rand, LMI, Maximus, Milton Roy, MP, Oberdorfer, Seepex, Thomas, Welch, Williams, YZ, and Zinnser Analytic brand names. This segment's products are used in medical, life sciences, industrial manufacturing, water and wastewater, chemical processing, energy, food and beverage, agriculture, and other markets. It sells through an integrated network of direct sales representatives and independent distributors. The company was formerly known as Gardner Denver Holdings, Inc. and changed its name to Ingersoll Rand Inc. in March 2020. Ingersoll Rand Inc. was founded in 1859 and is headquartered in Davidson, North Carolina.