Head-To-Head Survey: Volvo (VLVLY) versus The Competition

Volvo (OTCMKTS: VLVLY) is one of 30 publicly-traded companies in the “Motor vehicles & car bodies” industry, but how does it contrast to its competitors? We will compare Volvo to related businesses based on the strength of its valuation, dividends, analyst recommendations, institutional ownership, profitability, earnings and risk.

Dividends

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Volvo pays an annual dividend of $0.41 per share and has a dividend yield of 2.2%. Volvo pays out 33.3% of its earnings in the form of a dividend. As a group, “Motor vehicles & car bodies” companies pay a dividend yield of 1.4% and pay out 20.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Volvo and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Volvo 0 0 2 0 3.00
Volvo Competitors 440 1277 1636 110 2.41

As a group, “Motor vehicles & car bodies” companies have a potential upside of 7.68%. Given Volvo’s competitors higher possible upside, analysts plainly believe Volvo has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares Volvo and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Volvo $39.24 billion $2.46 billion 15.28
Volvo Competitors $62.83 billion $2.64 billion 16.99

Volvo’s competitors have higher revenue and earnings than Volvo. Volvo is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

0.0% of Volvo shares are held by institutional investors. Comparatively, 65.8% of shares of all “Motor vehicles & car bodies” companies are held by institutional investors. 8.1% of shares of all “Motor vehicles & car bodies” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Volvo and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Volvo 6.27% 21.08% 5.38%
Volvo Competitors -14.14% -0.31% -3.84%

Risk & Volatility

Volvo has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500. Comparatively, Volvo’s competitors have a beta of 1.00, indicating that their average stock price is 0% more volatile than the S&P 500.

Summary

Volvo competitors beat Volvo on 8 of the 15 factors compared.

Volvo 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 Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and bus chassis under the Volvo, Prevost, Nova Bus, UD Bus, and Sunwin brands. It also provides equipment used at construction sites, including pavers, compactors, excavators, wheel loaders, and articulated and rigid dump trucks 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.

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