Head to Head Review: Custom Truck One Source (NYSE:CTOS) vs. Northgate (OTCMKTS:NGTEF)

Northgate (OTCMKTS:NGTEF) and Custom Truck One Source (NYSE:CTOS) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northgate	N/A	N/A	N/A
Custom Truck One Source	-0.88%	-2.18%	-0.49%

Analyst Ratings

This is a summary of recent recommendations for Northgate and Custom Truck One Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northgate	0	0	0	0	0.00
Custom Truck One Source	2	1	4	0	2.29

Custom Truck One Source has a consensus target price of $10.14, suggesting a potential downside of 1.16%. Given Custom Truck One Source’s stronger consensus rating and higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than Northgate.

Institutional & Insider Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. 4.7% of Custom Truck One Source shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Northgate has a beta of 0.45, indicating that its share price is 55% less volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Earnings & Valuation

This table compares Northgate and Custom Truck One Source”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northgate	$863.72 million	0.83	N/A	N/A	N/A
Custom Truck One Source	$1.94 billion	1.20	-$31.05 million	($0.09)	-114.02

Northgate has higher earnings, but lower revenue than Custom Truck One Source.

Summary

Custom Truck One Source beats Northgate on 8 of the 11 factors compared between the two stocks.

About Northgate

Northgate plc provides light commercial vehicle hire services in the United Kingdom, Spain, and the Republic of Ireland. It also sells used vehicles; supplies other related goods and services; and offers fleet management services. The company operates a fleet of 53,000 vehicles from 77 locations in the United Kingdom; and a fleet of 40,000 vehicles from 24 locations in Spain. It serves construction and distribution, manufacturing and engineering, and business service industries, as well as local authorities, public utilities, and retailers and wholesalers. The company was founded in 1981 and is headquartered in Darlington, the United Kingdom.

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.