Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) and AB Volvo (publ) (OTCMKTS:VLVLY – Get Free Report) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.
Profitability
This table compares Mercedes-Benz Group and AB Volvo (publ)’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Mercedes-Benz Group | 6.99% | 10.90% | 3.84% |
AB Volvo (publ) | 9.57% | 27.91% | 7.15% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Mercedes-Benz Group and AB Volvo (publ), as provided by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Mercedes-Benz Group | 1 | 4 | 0 | 0 | 1.80 |
AB Volvo (publ) | 0 | 3 | 3 | 1 | 2.71 |
Valuation & Earnings
This table compares Mercedes-Benz Group and AB Volvo (publ)”s revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Mercedes-Benz Group | $157.56 billion | 0.39 | $15.43 billion | C$2.76 | 5.78 |
AB Volvo (publ) | $49.84 billion | 1.29 | $4.77 billion | $2.35 | 13.48 |
Mercedes-Benz Group has higher revenue and earnings than AB Volvo (publ). Mercedes-Benz Group is trading at a lower price-to-earnings ratio than AB Volvo (publ), indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
0.0% of AB Volvo (publ) shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Mercedes-Benz Group has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, AB Volvo (publ) has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.
Summary
AB Volvo (publ) beats Mercedes-Benz Group on 10 of the 13 factors compared between the two stocks.
About Mercedes-Benz Group
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
About AB Volvo (publ)
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.
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