Financial Survey: Polestar Automotive Holding UK (NASDAQ:PSNY) and Federal Signal (NYSE:FSS)

Federal Signal (NYSE:FSS) and Polestar Automotive Holding UK (NASDAQ:PSNY) are both mid-cap multi-sector conglomerates companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

Federal Signal has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500.

Valuation and Earnings

This table compares Federal Signal and Polestar Automotive Holding UK’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Signal	$1.43 billion	2.42	$120.40 million	$2.20	25.93
Polestar Automotive Holding UK	$2.65 billion	2.25	-$465.79 million	N/A	N/A

Federal Signal has higher earnings, but lower revenue than Polestar Automotive Holding UK.

Profitability

This table compares Federal Signal and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Signal	8.56%	15.62%	8.76%
Polestar Automotive Holding UK	N/A	N/A	N/A

Insider and Institutional Ownership

91.9% of Federal Signal shares are owned by institutional investors. Comparatively, 0.8% of Polestar Automotive Holding UK shares are owned by institutional investors. 3.1% of Federal Signal shares are owned by insiders. Comparatively, 0.0% of Polestar Automotive Holding UK shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Federal Signal and Polestar Automotive Holding UK, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Signal	0	2	0	1	2.67
Polestar Automotive Holding UK	1	1	3	0	2.40

Federal Signal currently has a consensus price target of $63.67, indicating a potential upside of 11.62%. Polestar Automotive Holding UK has a consensus price target of $7.40, indicating a potential upside of 165.71%. Given Polestar Automotive Holding UK’s higher possible upside, analysts clearly believe Polestar Automotive Holding UK is more favorable than Federal Signal.

Summary

Federal Signal beats Polestar Automotive Holding UK on 9 of the 13 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 Polestar Automotive Holding UK

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.