Analyzing VOLKSWAGEN (VLKAY) and VOLVO AB/ADR (OTCMKTS:VLVLY)
VOLVO AB/ADR (OTCMKTS: VLKAY) and VOLKSWAGEN (OTCMKTS:VLKAY) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
This table compares VOLVO AB/ADR and VOLKSWAGEN’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and target prices for VOLVO AB/ADR and VOLKSWAGEN, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Valuation and Earnings
This table compares VOLVO AB/ADR and VOLKSWAGEN’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VOLVO AB/ADR||$39.24 billion||0.88||$2.46 billion||$1.23||13.84|
|VOLKSWAGEN||$260.74 billion||0.31||$11.63 billion||$5.12||6.25|
VOLKSWAGEN has higher revenue and earnings than VOLVO AB/ADR. VOLKSWAGEN is trading at a lower price-to-earnings ratio than VOLVO AB/ADR, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
0.0% of VOLVO AB/ADR shares are owned by institutional investors. Comparatively, 0.1% of VOLKSWAGEN shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
VOLVO AB/ADR has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, VOLKSWAGEN has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.
VOLVO AB/ADR pays an annual dividend of $0.38 per share and has a dividend yield of 2.2%. VOLKSWAGEN pays an annual dividend of $0.68 per share and has a dividend yield of 2.1%. VOLVO AB/ADR pays out 30.9% of its earnings in the form of a dividend. VOLKSWAGEN pays out 13.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
VOLKSWAGEN beats VOLVO AB/ADR on 7 of the 13 factors compared between the two stocks.
VOLVO AB/ADR Company Profile
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, North America, South America, Asia, and internationally. The company offers trucks for long-haulage, construction, and distribution purposes under the Volvo, UD, Renault, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis under the Volvo, UD, Prevost, and Nova Bus brands. It also provides construction equipment, including excavators, wheel loaders and haulers, and road machinery under the brand names of Volvo, SDLG, and Terex Trucks. In addition, the company offers diesel engines for leisure boats; marine propulsion systems; drive systems and engines for propulsion and auxiliary equipment, and marine generator sets; and industrial engines for use in container terminals, mines, and other industrial applications under the Volvo Penta brand name. Further, it provides financial solutions, such as customer financing and leasing, dealer financing, and insurance; rental, preventive maintenance, assistance, and IT services; spare parts; and transport information systems. The company offers its products and services through a network of dealerships and workshops. AB Volvo (publ) was founded in 1915 and is headquartered in Gothenburg, Sweden.
VOLKSWAGEN Company Profile
Volkswagen Aktiengesellschaft, together with its subsidiaries, manufactures and sells automobiles primarily in Europe, North America, South America, and the Asia-Pacific. The company operates through four segments: Passenger Cars, Commercial Vehicles, Power Engineering, and Financial Services. The Passenger Cars segment develops vehicles and engines; and produces and sells passenger cars and related parts. The Commercial Vehicles segment develops, produces, and sells light commercial vehicles, trucks, and buses, as well as offers parts and related services. The Power Engineering segment develops and produces large-bore diesel engines, turbo compressors, industrial turbines, and chemical reactor systems, as well as produces gear units, propulsion components, and testing systems. The Financial Services segment offers dealer and customer financing, leasing, banking and insurance, fleet management, and mobility services. The company also offers motorcycles and turbomachinery; and operates HeyCar, an online used vehicles platform. It provides its products under the Volkswagen Passenger Cars, Audi, ?KODA, SEAT, Bentley, Porsche, Volkswagen Commercial Vehicles, Lamborghini, Bugatti, Ducati, Scania, and MAN brands, as well as under the MOIA brand. Volkswagen Aktiengesellschaft was founded in 1937 and is headquartered in Wolfsburg, Germany.
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