Financial Review: Ag Growth International (OTCMKTS:AGGZF) & AB Volvo (publ) (OTCMKTS:VOLVF)

AB Volvo (publ) (OTCMKTS:VOLVF) and Ag Growth International (OTCMKTS:AGGZF) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings & Valuation

This table compares AB Volvo (publ) and Ag Growth International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo (publ)	N/A	N/A	N/A	C$2.73	10.23
Ag Growth International	N/A	N/A	N/A	$1.80	16.45

AB Volvo (publ) is trading at a lower price-to-earnings ratio than Ag Growth International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for AB Volvo (publ) and Ag Growth International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo (publ)	0	0	0	0	0.00
Ag Growth International	0	0	3	0	3.00

Ag Growth International has a consensus price target of $62.00, suggesting a potential upside of 108.97%. Given Ag Growth International’s stronger consensus rating and higher possible upside, analysts plainly believe Ag Growth International is more favorable than AB Volvo (publ).

Insider and Institutional Ownership

24.4% of AB Volvo (publ) shares are held by institutional investors. Comparatively, 56.8% of Ag Growth International shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

AB Volvo (publ) pays an annual dividend of C$3.00 per share and has a dividend yield of 10.7%. Ag Growth International pays an annual dividend of $1.40 per share and has a dividend yield of 4.7%. AB Volvo (publ) pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ag Growth International pays out 77.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares AB Volvo (publ) and Ag Growth International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo (publ)	N/A	N/A	N/A
Ag Growth International	N/A	N/A	N/A

Summary

Ag Growth International beats AB Volvo (publ) on 6 of the 8 factors compared between the two stocks.

About AB Volvo (publ)

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

About Ag Growth International

Ag Growth International Inc., together with its subsidiaries, manufactures and sells equipment for the agriculture industry in Canada, the United States, and internationally. It operates through Farm and Commercial segments. The company offers grain, bolted, hopper, and smooth wall bins; temporary storage; unloads and sweeps systems; water tanks; secondary containment systems; fuel tanks; and storage accessories, as well as mixed flow dryers; fans and heaters; aeration products; vents and exhausters; and stirring systems. It also provides portable handling equipment, such as augers, conveyors, grain vacs, post pounders, seed treaters, and related accessories; permanent handling equipment, such as bucket elevators, chain and belt conveyors, distributors, feed handling, screw feeders and conveyors, and spouts and connectors. In addition, the company offers towers, catwalks, and ladders, as well as all-steel buildings; batch blenders, bulk scales, declining weight blenders, vertical blenders, micro-dosing systems, mixers, and milling equipment; and controllers, hazard monitoring, and monitoring and automation equipment. Its products are used in port facilities, inland grain terminals, corporate farms, fertilizer distribution sites, ethanol production, oilseed crushing, commercial feed mills, rice mills, and flour mills. The company serves farmers, agribusinesses, grain handlers, regional cooperatives, contractors, food and animal feed manufacturers, and fertilizer blenders and distributors. Ag Growth International Inc. was founded in 1996 and is based in Winnipeg, Canada.