Analyzing SiteOne Landscape Supply (NYSE:SITE) and Custom Truck One Source (NYSE:CTOS)

Custom Truck One Source (NYSE:CTOS) and SiteOne Landscape Supply (NYSE:SITE) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Valuation and Earnings

This table compares Custom Truck One Source and SiteOne Landscape Supply”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.94 billion	1.10	-$31.05 million	$0.09	104.49
SiteOne Landscape Supply	$4.70 billion	0.82	$155.40 million	$3.65	24.15

SiteOne Landscape Supply has higher revenue and earnings than Custom Truck One Source. SiteOne Landscape Supply is trading at a lower price-to-earnings ratio than Custom Truck One Source, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. 4.7% of Custom Truck One Source shares are owned by insiders. Comparatively, 2.1% of SiteOne Landscape Supply shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Custom Truck One Source has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500. Comparatively, SiteOne Landscape Supply has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Custom Truck One Source and SiteOne Landscape Supply, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	1	3	4	0	2.38
SiteOne Landscape Supply	1	6	5	0	2.33

Custom Truck One Source presently has a consensus price target of $12.00, suggesting a potential upside of 27.61%. SiteOne Landscape Supply has a consensus price target of $121.00, suggesting a potential upside of 37.27%. Given SiteOne Landscape Supply’s higher possible upside, analysts clearly believe SiteOne Landscape Supply is more favorable than Custom Truck One Source.

Profitability

This table compares Custom Truck One Source and SiteOne Landscape Supply’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	1.05%	2.66%	0.61%
SiteOne Landscape Supply	3.41%	9.76%	4.83%

Summary

SiteOne Landscape Supply beats Custom Truck One Source on 8 of the 14 factors compared between 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 SiteOne Landscape Supply

SiteOne Landscape Supply, Inc., together with its subsidiaries, engages in the wholesale distribution of landscape supplies in the United States and Canada. The company provides irrigation products, including controllers, valves, sprinkler heads, irrigation pipes, micro irrigation, and drip products; fertilizer, grass seed, and ice melt products; control products, such as herbicides, fungicides, rodenticides, and other pesticides; landscape accessories that include mulches, soil amendments, drainage pipes, tools, and sods; nursery goods, which consist of deciduous and evergreen shrubs, ornamental, shade, evergreen trees, field grown and container-grown nursery stock, roses, perennials, annuals, bulbs, and plant species and cultivars; hardscapes, such as pavers, natural stones, blocks, and other durable materials; and outdoor lighting products that include lighting fixtures, LED lamps, wires, transformers, and accessories. It also offers consultative services consisting of assistance with irrigation project take-offs, commercial project planning, generation of sales leads, business operations, and product support services, as well as a series of technical and business management seminars; and distributes branded products of third parties. The company offers its products under the LESCO, SiteOne Green Tech, and Pro-Trade brand names. It markets its products primarily to residential and commercial landscape professionals who specializes in the design, installation, and maintenance of lawns, gardens, golf courses, and other outdoor spaces through branch network and direct distribution. SiteOne Landscape Supply, Inc. was incorporated in 2013 and is headquartered in Roswell, Georgia.