Head-To-Head Review: Volcon (NASDAQ:VLCN) and PACCAR (NASDAQ:PCAR)

Volcon (NASDAQ:VLCN) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Analyst Recommendations

This is a summary of current recommendations and price targets for Volcon and PACCAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Volcon	0	0	0	0	0.00
PACCAR	0	8	5	0	2.38

PACCAR has a consensus price target of $116.55, indicating a potential upside of 3.82%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts plainly believe PACCAR is more favorable than Volcon.

Insider and Institutional Ownership

64.9% of PACCAR shares are held by institutional investors. 0.1% of Volcon shares are held by insiders. Comparatively, 2.0% of PACCAR shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Volcon and PACCAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Volcon	-1,056.79%	N/A	-136.11%
PACCAR	13.51%	27.24%	11.37%

Valuation and Earnings

This table compares Volcon and PACCAR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Volcon	$3.26 million	0.69	-$45.07 million	N/A	N/A
PACCAR	$35.13 billion	1.68	$4.60 billion	$8.95	12.54

PACCAR has higher revenue and earnings than Volcon.

Risk and Volatility

Volcon has a beta of -0.97, meaning that its share price is 197% less volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Summary

PACCAR beats Volcon on 12 of the 12 factors compared between the two stocks.

About Volcon

Volcon, Inc. develops, manufactures, and sells electric off road powersport vehicles in the United States. It provides electric two and four-wheel motorcycles, and utility terrain vehicles through its dealers. The company also offers a line of upgrades and accessories. Its products are designed for family off-road adventures, and work on the farm and fun transport around private land applications. The company was formerly known as Frog ePowersports, Inc. and changed its name to Volcon, Inc. in October 2020. Volcon, Inc. was incorporated in 2020 and is based in Round Rock, Texas.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.