AB Volvo (OTCMKTS:VLVLY – Get Free Report) and China Automotive Systems (NASDAQ:CAAS – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Analyst Recommendations
This is a summary of recent recommendations and price targets for AB Volvo and China Automotive Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB Volvo | 1 | 6 | 0 | 2 | 2.33 |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
0.0% of AB Volvo shares are owned by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are owned by institutional investors. 64.8% of China Automotive Systems shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Profitability
This table compares AB Volvo and China Automotive Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB Volvo | 8.32% | 23.35% | 5.99% |
| China Automotive Systems | 5.59% | 10.58% | 5.07% |
Valuation and Earnings
This table compares AB Volvo and China Automotive Systems”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 | 1.43 | $3.52 billion | $2.03 | 16.92 |
| China Automotive Systems | $765.74 million | 0.18 | $42.84 million | $1.42 | 3.13 |
AB Volvo has higher revenue and earnings than China Automotive Systems. China Automotive Systems is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.
Summary
AB Volvo beats China Automotive Systems on 11 of the 13 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 China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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