Comparing Rectitude (NASDAQ:RECT) and Rush Enterprises (NASDAQ:RUSHA)

Rectitude (NASDAQ:RECT) and Rush Enterprises (NASDAQ:RUSHA) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Profitability

This table compares Rectitude and Rush Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Rush Enterprises	3.67%	11.65%	5.84%

Dividends

Rectitude pays an annual dividend of $0.10 per share and has a dividend yield of 7.8%. Rush Enterprises pays an annual dividend of $0.51 per share and has a dividend yield of 1.0%. Rush Enterprises pays out 23.1% of its earnings in the form of a dividend. Rush Enterprises has increased its dividend for 6 consecutive years.

Volatility and Risk

Rectitude has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, Rush Enterprises has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rectitude and Rush Enterprises, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Rush Enterprises	1	1	3	0	2.40

Rush Enterprises has a consensus price target of $46.00, indicating a potential downside of 9.72%. Given Rush Enterprises’ stronger consensus rating and higher possible upside, analysts plainly believe Rush Enterprises is more favorable than Rectitude.

Institutional and Insider Ownership

84.4% of Rush Enterprises shares are held by institutional investors. 12.7% of Rush Enterprises shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Rectitude and Rush Enterprises”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$39.74 million	0.50	$2.78 million	N/A	N/A
Rush Enterprises	$7.43 billion	0.80	$263.78 million	$2.21	23.05

Rush Enterprises has higher revenue and earnings than Rectitude.

Summary

Rush Enterprises beats Rectitude on 12 of the 15 factors compared between the two stocks.

About Rectitude

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Rush Enterprises

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States and Canada. The company operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Its Rush Truck Centers primarily sell commercial vehicles manufactured by Peterbilt, International, Hino, Ford, Isuzu, IC Bus, Blue Bird, and Dennis Eagle. The company also offers new and used commercial vehicles, and aftermarket parts, as well as service and repair, financing, and leasing and rental services; and offers property and casualty insurance, including collision and liability insurance on commercial vehicles, cargo insurance, and credit life insurance products. In addition, it provides equipment installation and repair, parts installation, and paint and body repair services; new vehicle pre-delivery inspection, truck modification, and natural gas fuel system installation services, body, chassis upfitting, and component installation services; and vehicle telematics products, as well as sells new and used trailers, and tires for use on commercial vehicles. The company serves regional and national fleets, corporations, local and state governments, and owner-operators. It operates a network of centers located in the states of Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Missouri, Nevada, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Utah, Virginia, and Ontario. Rush Enterprises, Inc. was incorporated in 1965 and is headquartered in New Braunfels, Texas.