WESCO International (NYSE:WCC) versus Custom Truck One Source (NYSE:CTOS) Financial Contrast

WESCO International (NYSE:WCC) and Custom Truck One Source (NYSE:CTOS) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Valuation & Earnings

This table compares WESCO International and Custom Truck One Source”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
WESCO International	$23.51 billion	0.77	$640.20 million	$14.47	25.60
Custom Truck One Source	$1.94 billion	1.11	-$31.05 million	$0.09	105.28

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
WESCO International	2.84%	14.95%	4.45%
Custom Truck One Source	1.05%	2.66%	0.61%

Analyst Recommendations

This is a summary of recent ratings and price targets for WESCO International and Custom Truck One Source, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
WESCO International	0	1	6	1	3.00
Custom Truck One Source	1	2	4	1	2.62

WESCO International presently has a consensus price target of $394.17, indicating a potential upside of 6.40%. Custom Truck One Source has a consensus price target of $12.00, indicating a potential upside of 26.65%. Given Custom Truck One Source’s higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than WESCO International.

Insider & Institutional Ownership

93.8% of WESCO International shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 2.6% of WESCO International shares are held by insiders. Comparatively, 4.7% 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 stock will outperform the market over the long term.

Volatility & Risk

WESCO International has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Summary

WESCO International beats Custom Truck One Source on 10 of the 14 factors compared between the two stocks.

About WESCO International

WESCO International, Inc. provides business-to-business distribution, logistics services, and supply chain solutions in the United States, Canada, and internationally. It operates through three segments: Electrical & Electronic Solutions (EES), Communications & Security Solutions (CSS), and Utility and Broadband Solutions (UBS). The EES segment supplies products and supply chain solutions, including electrical equipment and supplies, automation and connected devices, security, lighting, wire and cable, and safety, as well as maintenance, repair, and operating (MRO) products. This segment also offers contractor solutions, direct and indirect manufacturing supply chain optimization programs, lighting and renewables advisory services, and digital and automation solutions. The CSS segment operates in the network infrastructure and security markets. This segment sells products directly to end-users or through various channels, including data communications contractors, security, network, professional audio/visual, and systems integrators. It also provides safety and energy management solutions. The UBS segment offers products and services to investor-owned utilities; public power companies; and service and wireless providers, broadband operators, and contractors. This segment's products include wire and cables, transformers, transmission and distribution hardware, switches, protective devices, connectors, conduits, pole line hardware, racks, cabinets, safety and MRO products, and point-to-point wireless devices. This segment also offers various service solutions, including fiber project management, high and medium voltage project design and support, pre-wired meters and capacitor banks, meter testing and metering infrastructure installation, personal protective equipment dielectric testing, and tool repair, as well as emergency response, storage yard, materials, and logistics management. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.

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.