Custom Truck One Source (NYSE:CTOS) and Solid Power (NASDAQ:SLDP) Head-To-Head Comparison

Custom Truck One Source (NYSE:CTOS) and Solid Power (NASDAQ:SLDP) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, profitability, dividends, institutional ownership, valuation, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	-1.89%	-6.61%	-1.54%
Solid Power	-412.62%	-23.13%	-21.54%

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.80 billion	0.77	-$28.66 million	($0.16)	-38.44
Solid Power	$20.72 million	51.27	-$96.52 million	($0.52)	-11.27

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

Insider and Institutional Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. Comparatively, 33.7% of Solid Power shares are owned by institutional investors. 4.5% of Custom Truck One Source shares are owned by company insiders. Comparatively, 4.9% of Solid Power shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Custom Truck One Source and Solid Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	2	2	2	0	2.00
Solid Power	1	0	1	0	2.00

Custom Truck One Source presently has a consensus target price of $6.63, suggesting a potential upside of 7.72%. Solid Power has a consensus target price of $4.00, suggesting a potential downside of 31.74%. Given Custom Truck One Source’s higher probable upside, equities research analysts clearly believe Custom Truck One Source is more favorable than Solid Power.

Volatility & Risk

Custom Truck One Source has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Solid Power has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Summary

Custom Truck One Source beats Solid Power on 9 of the 13 factors compared between the two stocks.

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.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.