Schaeffler (OTCMKTS:SCFLF – Get Free Report) and Custom Truck One Source (NYSE:CTOS – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.
Insider and Institutional Ownership
90.1% of Custom Truck One Source shares are held by institutional investors. 4.7% of Custom Truck One Source shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Schaeffler and Custom Truck One Source”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Schaeffler | $19.68 billion | 0.04 | -$683.89 million | ($1.31) | -3.66 |
| Custom Truck One Source | $1.94 billion | 1.19 | -$31.05 million | ($0.09) | -113.28 |
Custom Truck One Source has lower revenue, but higher earnings than Schaeffler. Custom Truck One Source is trading at a lower price-to-earnings ratio than Schaeffler, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current recommendations for Schaeffler and Custom Truck One Source, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Schaeffler | 0 | 0 | 1 | 0 | 3.00 |
| Custom Truck One Source | 2 | 1 | 4 | 0 | 2.29 |
Custom Truck One Source has a consensus price target of $10.14, suggesting a potential downside of 0.51%. Given Custom Truck One Source’s higher possible upside, analysts clearly believe Custom Truck One Source is more favorable than Schaeffler.
Profitability
This table compares Schaeffler and Custom Truck One Source’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Schaeffler | -4.73% | -10.43% | -1.77% |
| Custom Truck One Source | -0.88% | -2.18% | -0.49% |
Risk and Volatility
Schaeffler has a beta of 0.89, indicating that its share price is 11% less volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.34, indicating that its share price is 34% more volatile than the S&P 500.
Summary
Custom Truck One Source beats Schaeffler on 11 of the 14 factors compared between the two stocks.
About Schaeffler
Schaeffler AG, together with its subsidiaries, develops, manufactures, and sells components and system for industrial applications in Europe, the Americas, China, and the Asia Pacific. The Automotive Technologies division offers mechanical, mechatronic, and electronic components and systems for powertrain electrification used in passenger cars and commercial vehicles, such as electric motors, axle transmissions, axle drives, power electronics, hybrid modules, electromechanical and hydraulic actuators, and thermal management module; torque converters, hybrid dampers, clutches, variable valve train systems, valve-lash adjustment elements, balancer shafts, camshaft phasing systems, timing drives, and front end auxillary drives. This division provides rolling bearing application and products, such as wheel, ball, and needle roller bearings; and mechanical components and mechatronic systems for steering and other chassis applications, including Space Drive, a steer-by-wire system. The Automotive Aftermarket division offers components and repair solutions for light commercial vehicles, trucks and buses, and offroad sectors under the LuK, INA, and FAG brand names, as well as service for repair shops under the REPXPERT brand. The Industrial division develops and manufactures rotary and linear bearing solutions, drive technology components and systems, and service solutions, such as sensor-based condition monitoring systems. This division serves customers in the wind, raw materials, aerospace, rail, offroad, two wheelers, power transmission, and industrial automation sectors. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.
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.
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