Financial Comparison: AB Volvo (OTCMKTS:VLVLY) & Custom Truck One Source (NYSE:CTOS)

AB Volvo (OTCMKTS:VLVLY) and Custom Truck One Source (NYSE:CTOS) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.

Profitability

This table compares AB Volvo and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.47%	23.01%	6.14%
Custom Truck One Source	-1.60%	-3.88%	-0.88%

Analyst Recommendations

This is a summary of current ratings and target prices for AB Volvo and Custom Truck One Source, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	2	2.33
Custom Truck One Source	2	2	3	0	2.14

Custom Truck One Source has a consensus target price of $7.40, suggesting a potential downside of 2.70%. Given Custom Truck One Source’s higher possible upside, analysts clearly believe Custom Truck One Source is more favorable than AB Volvo.

Valuation & Earnings

This table compares AB Volvo and Custom Truck One Source”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.48	$3.52 billion	$2.04	17.48
Custom Truck One Source	$1.94 billion	0.89	-$31.05 million	($0.15)	-50.70

AB Volvo has higher revenue and earnings than Custom Truck One Source. Custom Truck One Source is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

0.0% of AB Volvo shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 4.5% of Custom Truck One Source shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

AB Volvo has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Summary

AB Volvo beats Custom Truck One Source on 11 of the 15 factors compared between the two stocks.

About AB Volvo

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 Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.