Iochpe-Maxion (OTCMKTS:IOCJY) vs. Wabash National (NYSE:WNC) Head to Head Analysis

Wabash National (NYSE:WNC) and Iochpe-Maxion (OTCMKTS:IOCJY) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Valuation and Earnings

This table compares Wabash National and Iochpe-Maxion”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wabash National	$1.54 billion	0.33	$211.45 million	($1.60)	-7.78
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	18.03

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

Profitability

This table compares Wabash National and Iochpe-Maxion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Wabash National	-4.41%	-30.16%	-8.79%
Iochpe-Maxion	0.58%	1.89%	0.62%

Analyst Ratings

This is a breakdown of recent recommendations for Wabash National and Iochpe-Maxion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wabash National	1	1	2	0	2.25
Iochpe-Maxion	0	1	0	0	2.00

Wabash National currently has a consensus target price of $18.00, indicating a potential upside of 44.59%. Given Wabash National’s stronger consensus rating and higher possible upside, equities analysts plainly believe Wabash National is more favorable than Iochpe-Maxion.

Volatility & Risk

Wabash National has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, Iochpe-Maxion has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Institutional and Insider Ownership

97.0% of Wabash National shares are held by institutional investors. 2.8% of Wabash National shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Wabash National pays an annual dividend of $0.32 per share and has a dividend yield of 2.6%. Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.8%. Wabash National pays out -20.0% of its earnings in the form of a dividend. Iochpe-Maxion pays out 33.3% 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.

Summary

Wabash National beats Iochpe-Maxion 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 Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.