China Automotive Systems (NASDAQ:CAAS) versus Custom Truck One Source (NYSE:CTOS) Critical Comparison

Custom Truck One Source (NYSE:CTOS) and China Automotive Systems (NASDAQ:CAAS) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Custom Truck One Source and China Automotive Systems, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	2	1	4	0	2.29
China Automotive Systems	0	1	0	0	2.00

Custom Truck One Source presently has a consensus target price of $9.33, indicating a potential downside of 5.00%. Given Custom Truck One Source’s stronger consensus rating and higher probable upside, research analysts clearly believe Custom Truck One Source is more favorable than China Automotive Systems.

Insider & Institutional Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are owned by institutional investors. 4.7% of Custom Truck One Source shares are owned by insiders. Comparatively, 64.8% of China Automotive Systems shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Custom Truck One Source and China Automotive Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	-0.88%	-2.18%	-0.49%
China Automotive Systems	5.59%	10.58%	5.07%

Volatility & Risk

Custom Truck One Source has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Earnings and Valuation

This table compares Custom Truck One Source and China Automotive Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.94 billion	1.15	-$31.05 million	($0.09)	-109.17
China Automotive Systems	$765.74 million	0.19	$42.84 million	$1.42	3.33

China Automotive Systems has lower revenue, but higher earnings than Custom Truck One Source. Custom Truck One Source is trading at a lower price-to-earnings ratio than China Automotive Systems, indicating that it is currently the more affordable of the two stocks.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.

About China Automotive Systems

China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.