Analyzing Omega Flex (NASDAQ:OFLX) and Oshkosh (NYSE:OSK)

Omega Flex (NASDAQ:OFLX) and Oshkosh (NYSE:OSK) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, institutional ownership, risk, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Omega Flex and Oshkosh, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omega Flex	1	0	0	0	1.00
Oshkosh	1	5	11	0	2.59

Oshkosh has a consensus price target of $165.79, suggesting a potential upside of 26.00%. Given Oshkosh’s stronger consensus rating and higher probable upside, analysts clearly believe Oshkosh is more favorable than Omega Flex.

Volatility & Risk

Omega Flex has a beta of 0.44, suggesting that its share price is 56% less volatile than the S&P 500. Comparatively, Oshkosh has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omega Flex	12.27%	14.26%	11.54%
Oshkosh	5.24%	12.95%	5.86%

Institutional & Insider Ownership

36.1% of Omega Flex shares are held by institutional investors. Comparatively, 92.4% of Oshkosh shares are held by institutional investors. 65.2% of Omega Flex shares are held by insiders. Comparatively, 0.6% of Oshkosh shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Omega Flex pays an annual dividend of $1.36 per share and has a dividend yield of 5.5%. Oshkosh pays an annual dividend of $2.28 per share and has a dividend yield of 1.7%. Omega Flex pays out 114.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oshkosh pays out 26.1% of its earnings in the form of a dividend. Omega Flex has increased its dividend for 7 consecutive years and Oshkosh has increased its dividend for 13 consecutive years.

Valuation & Earnings

This table compares Omega Flex and Oshkosh”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omega Flex	$98.30 million	2.54	$14.83 million	$1.19	20.76
Oshkosh	$10.61 billion	0.77	$647.00 million	$8.74	15.05

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

Summary

Oshkosh beats Omega Flex on 10 of the 17 factors compared between the two stocks.

About Omega Flex

Omega Flex, Inc., together with its subsidiaries, manufactures and sells flexible metal hoses and accessories in North America and internationally. It offers flexible gas piping for use in residential and commercial buildings; fittings; containment pining; and corrugated medical tubing for use in hospitals, ambulatory care centers, dental, physician and veterinary clinics, laboratories, and other facilities. The company sells its products under the TracPipe, CounterStrike, AutoSnap, AutoFlare, DoubleTrac, DEF-Trac, and MediTrac brand names. It serves various markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical, and other industries. The company sells its products through independent sales representatives, distributors, fabricating distributors, wholesalers, original equipment manufacturers, and direct sales, as well as through its website. The company was formerly known as Tofle America, Inc. and changed its name to Omega Flex, Inc. in 1996. Omega Flex, Inc. was incorporated in 1975 and is based in Exton, Pennsylvania.

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.