Commercial Vehicle Group (NASDAQ:CVGI) vs. AB Volvo (OTCMKTS:VLVLY) Critical Analysis

Commercial Vehicle Group (NASDAQ:CVGI) and AB Volvo (OTCMKTS:VLVLY) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Commercial Vehicle Group and AB Volvo, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commercial Vehicle Group	1	1	2	0	2.25
AB Volvo	1	6	0	3	2.50

Commercial Vehicle Group presently has a consensus price target of $6.00, suggesting a potential upside of 22.95%. Given Commercial Vehicle Group’s higher possible upside, analysts plainly believe Commercial Vehicle Group is more favorable than AB Volvo.

Profitability

This table compares Commercial Vehicle Group and AB Volvo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commercial Vehicle Group	-2.70%	-12.47%	-4.15%
AB Volvo	8.32%	22.17%	5.92%

Earnings and Valuation

This table compares Commercial Vehicle Group and AB Volvo”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commercial Vehicle Group	$649.00 million	0.27	-$22.78 million	($0.52)	-9.38
AB Volvo	$48.98 billion	1.46	$3.52 billion	$2.03	17.27

AB Volvo has higher revenue and earnings than Commercial Vehicle Group. Commercial Vehicle Group is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

72.3% of Commercial Vehicle Group shares are held by institutional investors. Comparatively, 0.0% of AB Volvo shares are held by institutional investors. 15.6% of Commercial Vehicle Group 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 and Risk

Commercial Vehicle Group has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500. Comparatively, AB Volvo has a beta of 1.19, suggesting that its share price is 19% more volatile than the S&P 500.

Summary

AB Volvo beats Commercial Vehicle Group on 10 of the 15 factors compared between the two stocks.

About Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.

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.