Analyzing Arrival (NASDAQ:ARVL) and PACCAR (NASDAQ:PCAR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Arrival	N/A	N/A	N/A
PACCAR	11.20%	29.75%	12.07%

Valuation & Earnings

This table compares Arrival and PACCAR’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arrival	N/A	N/A	-$1.31 billion	N/A	N/A
PACCAR	$28.82 billion	1.53	$3.01 billion	$6.96	12.14

PACCAR has higher revenue and earnings than Arrival.

Insider & Institutional Ownership

65.7% of PACCAR shares are owned by institutional investors. 0.5% of Arrival shares are owned by insiders. Comparatively, 2.1% of PACCAR shares are owned 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.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Arrival and PACCAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arrival	0	1	0	0	2.00
PACCAR	1	8	3	1	2.31

Arrival currently has a consensus price target of $275.00, suggesting a potential upside of 18,233.33%. PACCAR has a consensus price target of $74.57, suggesting a potential downside of 11.76%. Given Arrival’s higher possible upside, equities research analysts clearly believe Arrival is more favorable than PACCAR.

Volatility & Risk

Arrival has a beta of 2.52, suggesting that its share price is 152% more volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Summary

PACCAR beats Arrival on 10 of the 12 factors compared between the two stocks.

About Arrival

Arrival engages in the research and development, and design of commercial electric vehicles (EVs), EVs components, robotic manufacturing processes for EVs, and associated software in the United Kingdom, the United States, Russia, and internationally. Its products portfolio includes commercial EV vans, buses, and cars. The company was formerly known as Arrival Group S.A. and changed its name to Arrival. The company was founded in 2015 and is based in Howald, Luxembourg. Arrival is a subsidiary of Kinetik S.à r.l.

About PACCAR

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, 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.