Contrasting GATX (NYSE:GATX) and Rush Enterprises (NASDAQ:RUSHA)

Rush Enterprises (NASDAQ:RUSHA – Get Free Report) and GATX (NYSE:GATX – Get Free Report) are both mid-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Earnings & Valuation

This table compares Rush Enterprises and GATX”s revenue, earnings per share and valuation.

GATX has lower revenue, but higher earnings than Rush Enterprises. GATX is trading at a lower price-to-earnings ratio than Rush Enterprises, indicating that it is currently the more affordable of the two stocks.

Dividends

Rush Enterprises pays an annual dividend of $0.56 per share and has a dividend yield of 1.3%. GATX pays an annual dividend of $2.64 per share and has a dividend yield of 1.4%. Rush Enterprises pays out 24.2% of its earnings in the form of a dividend. GATX pays out 24.5% 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. Rush Enterprises has raised its dividend for 6 consecutive years and GATX has raised its dividend for 15 consecutive years. GATX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

84.4% of Rush Enterprises shares are held by institutional investors. Comparatively, 93.1% of GATX shares are held by institutional investors. 12.7% of Rush Enterprises shares are held by insiders. Comparatively, 1.9% of GATX shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Rush Enterprises has a beta of 0.89, suggesting that its share price is 11% less volatile than the S&P 500. Comparatively, GATX has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Rush Enterprises and GATX, as reported by MarketBeat.com.

Rush Enterprises presently has a consensus price target of $50.26, indicating a potential upside of 13.71%. GATX has a consensus price target of $219.33, indicating a potential upside of 20.03%. Given GATX’s higher probable upside, analysts plainly believe GATX is more favorable than Rush Enterprises.

Profitability

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

Summary

GATX beats Rush Enterprises on 10 of the 17 factors compared between the two stocks.

About Rush Enterprises

(Get Free Report)

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.

About GATX

(Get Free Report)

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.