Comparing Volvo (VLVLY) & The Competition

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

Risk & Volatility

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Volvo has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Volvo’s peers have a beta of 1.00, suggesting that their average share price is 0% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Volvo shares are held by institutional investors. Comparatively, 65.7% of shares of all “Motor vehicles & car bodies” companies are held by institutional investors. 8.5% of shares of all “Motor vehicles & car bodies” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Volvo and its peers, 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 1265 1628 110 2.41

As a group, “Motor vehicles & car bodies” companies have a potential upside of 9.63%. Given Volvo’s peers higher possible upside, analysts clearly believe Volvo has less favorable growth aspects than its peers.

Profitability

This table compares Volvo and its peers’ 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 -14.13% -0.28% -3.83%

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Volvo $39.24 billion $2.46 billion 13.89
Volvo Competitors $62.83 billion $2.64 billion 15.98

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

Summary

Volvo peers beat Volvo on 7 of the 13 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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