NetApp vs. PACCAR: NTAP stock's significantly higher valuation vs. PCAR appears counterintuitive

Last Updated: 11/2/2024

PACCAR Appears To Be A Better Choice Compared To NetApp

PCAR valuation (P/EBIT) is significantly lower vs. NTAP, but PCAR has performed worse on growth and similar on margins

This disconnect between valuation and financial performance implies that PCAR could be a better buy 

 

NetApp valuation (P/EBIT) is significantly higher compared to PACCAR

NTAP vs. PCAR P/EBIT Change In Last 3 Years: 7,286,063,650% vs. -51%

NetApp revenue growth is better compared to PACCAR

NTAP vs. PCAR Revenue Growth:   Last Q: 7.6% vs. -5.2%; Last 12 Months: 2.8% vs. 1.9%; Last 3 Years Average: 2.9% vs. 23%

NetApp's EBIT margin expansion is similar compared to PACCAR

NTAP vs. PCAR EBIT Margin Change:   Last 3 Years: 1.2x vs. 1.6x

While PACCAR appears to be the better choice today, how has its stock performed vs. NetApp in the past?

Since 2020, returns have been:

  • 144% for NetApp (NTAP)
  • 243% for PACCAR (PCAR) 
  • 132% for S&P 500 
  • 519% for Trefis Multi-Strategy Portfolio 

Making Sense Of Counterintuitive Comparisons

Concepts, FAQ, And Things You May Want To Know

[1] What Is The Purpose Of Counterintuitive Comparisons?

[2] How Do You Find These Counterintuitive Pairs?

[3] If I Were To Decide Based On Counterintuitive Comparisons, How Likely Is It That I Will Make The Right Pick?

[4] Where Can I See More Such Counterintuitive Comparisons?

[5] I Don't Want To Go Through Multiple Comparisons, Can You Simplify Investment Decision For Me?

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