Federal Signal (NYSE:FSS – Get Free Report) and Lotus Technology (NASDAQ:LOT – Get Free Report) are both multi-sector conglomerates companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.
Analyst Ratings
This is a breakdown of current ratings for Federal Signal and Lotus Technology, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Signal | 0 | 0 | 1 | 0 | 3.00 |
| Lotus Technology | 0 | 1 | 0 | 0 | 2.00 |
Lotus Technology has a consensus price target of $7.00, suggesting a potential upside of 39.17%. Given Lotus Technology’s higher possible upside, analysts clearly believe Lotus Technology is more favorable than Federal Signal.
Volatility and Risk
Profitability
This table compares Federal Signal and Lotus Technology’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Signal | 11.16% | 18.31% | 11.35% |
| Lotus Technology | N/A | N/A | -39.69% |
Institutional & Insider Ownership
92.7% of Federal Signal shares are held by institutional investors. Comparatively, 63.4% of Lotus Technology shares are held by institutional investors. 3.1% of Federal Signal shares are held by company insiders. Comparatively, 0.2% of Lotus Technology shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Federal Signal and Lotus Technology”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Signal | $1.81 billion | 2.91 | $157.40 million | $2.96 | 29.09 |
| Lotus Technology | $947.09 million | 0.36 | -$742.00 million | ($0.84) | -5.99 |
Federal Signal has higher revenue and earnings than Lotus Technology. Lotus Technology is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.
Summary
Federal Signal beats Lotus Technology on 13 of the 14 factors compared between the two stocks.
About Federal Signal
Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.
About Lotus Technology
Lotus Technology Inc. engages in the design, development, and sale of battery electric lifestyle vehicles worldwide. It also distributes sports cars. The company sells its products under the Lotus brand. Lotus Technology Inc. is based in Shanghai, China.
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