Analyzing VinFast Auto (NASDAQ:VFS) and AB Volvo (publ) (OTCMKTS:VLVLY)

AB Volvo (publ) (OTCMKTS:VLVLYGet Free Report) and VinFast Auto (NASDAQ:VFSGet Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, risk and valuation.

Risk and Volatility

AB Volvo (publ) has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.93, meaning that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares AB Volvo (publ) and VinFast Auto’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AB Volvo (publ) $52.11 billion 0.99 $4.70 billion $2.37 10.76
VinFast Auto $1.20 billion N/A -$2.40 billion ($0.82) -5.30

AB Volvo (publ) has higher revenue and earnings than VinFast Auto. VinFast Auto 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for AB Volvo (publ) and VinFast Auto, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AB Volvo (publ) 0 3 2 0 2.40
VinFast Auto 0 0 4 0 3.00

VinFast Auto has a consensus price target of $9.75, indicating a potential upside of 126.74%. Given VinFast Auto’s stronger consensus rating and higher possible upside, analysts plainly believe VinFast Auto is more favorable than AB Volvo (publ).

Profitability

This table compares AB Volvo (publ) and VinFast Auto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AB Volvo (publ) 9.23% 29.66% 7.40%
VinFast Auto N/A N/A -44.67%

Institutional & Insider Ownership

0.0% of AB Volvo (publ) shares are held by institutional investors. 16.2% of VinFast Auto shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

AB Volvo (publ) beats VinFast Auto on 8 of the 12 factors compared between the two stocks.

About AB Volvo (publ)

(Get Free Report)

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.

About VinFast Auto

(Get Free Report)

VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.

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