Parker-Hannifin (NYSE:PH) vs. Daimler Truck (OTCMKTS:DTRUY) Critical Comparison

Parker-Hannifin (NYSE:PH) and Daimler Truck (OTCMKTS:DTRUY) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Volatility & Risk

Parker-Hannifin has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Daimler Truck has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Profitability

This table compares Parker-Hannifin and Daimler Truck’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Parker-Hannifin	16.97%	28.48%	13.49%
Daimler Truck	5.87%	4.79%	1.46%

Dividends

Parker-Hannifin pays an annual dividend of $8.00 per share and has a dividend yield of 0.9%. Daimler Truck pays an annual dividend of $0.79 per share and has a dividend yield of 3.5%. Parker-Hannifin pays out 28.1% of its earnings in the form of a dividend. Daimler Truck pays out 158.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Parker-Hannifin has raised its dividend for 70 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Parker-Hannifin and Daimler Truck, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parker-Hannifin	0	5	18	0	2.78
Daimler Truck	0	3	5	1	2.78

Parker-Hannifin presently has a consensus price target of $1,146.35, suggesting a potential upside of 30.26%. Given Parker-Hannifin’s stronger consensus rating and higher probable upside, analysts clearly believe Parker-Hannifin is more favorable than Daimler Truck.

Valuation & Earnings

This table compares Parker-Hannifin and Daimler Truck”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parker-Hannifin	$21.50 billion	5.16	$3.65 billion	$28.49	30.89
Daimler Truck	$51.50 billion	0.67	$2.23 billion	$0.50	44.88

Parker-Hannifin has higher earnings, but lower revenue than Daimler Truck. Parker-Hannifin is trading at a lower price-to-earnings ratio than Daimler Truck, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

82.4% of Parker-Hannifin shares are owned by institutional investors. 0.3% of Parker-Hannifin shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Parker-Hannifin beats Daimler Truck on 14 of the 18 factors compared between the two stocks.

About Parker-Hannifin

Parker-Hannifin Corporation manufactures and sells motion and control technologies and systems for various mobile, industrial, and aerospace markets worldwide. The company operates through two segments: Diversified Industrial and Aerospace Systems. The Diversified Industrial segment offers sealing, shielding, thermal products and systems, adhesives, coatings, and noise vibration and harshness solutions; filters, systems, and diagnostics solutions to ensure purity and remove contaminants from fuel, air, oil, water, and other liquids and gases; connectors used in fluid and gas handling; and hydraulic, pneumatic, and electromechanical components and systems for builders and users of mobile and industrial machinery and equipment. This segment sells its products to original equipment manufacturers (OEMs) and distributors who serve the replacement markets in manufacturing, packaging, processing, transportation, construction, refrigeration and air conditioning, agricultural, and military machinery and equipment industries. The Aerospace Systems segment offers products for use in commercial and military airframe and engine programs, such as control actuation systems and components, engine build-up ducting, engine exhaust nozzles and assemblies, engine systems and components, fluid conveyance systems and components, fuel systems and components, fuel tank inerting systems, hydraulic systems and components, lubrication components, avionics, sensors, pneumatic control components, thermal management products, fire detection and suppression systems and components, and wheels and brakes, as well as fluid metering, delivery, and atomization devices. This segment markets its products directly to OEMs and end users. The company markets its products through direct-sales employees, independent distributors, and sales representatives. Parker-Hannifin Corporation was founded in 1917 and is headquartered in Cleveland, Ohio.

About Daimler Truck

Daimler Truck Holding AG manufactures and sells commercial trucks. The company was founded in 2021 and is based in Stuttgart, Germany.