Analyzing China Yuchai International (NYSE:CYD) & Custom Truck One Source (NYSE:CTOS)

Custom Truck One Source (NYSE:CTOS) and China Yuchai International (NYSE:CYD) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Risk & Volatility

Custom Truck One Source has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, China Yuchai International has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Custom Truck One Source and China Yuchai International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	2	3	2	0	2.00
China Yuchai International	0	3	0	0	2.00

Custom Truck One Source presently has a consensus price target of $7.13, suggesting a potential upside of 20.46%. Given Custom Truck One Source’s higher possible upside, equities analysts plainly believe Custom Truck One Source is more favorable than China Yuchai International.

Earnings & Valuation

This table compares Custom Truck One Source and China Yuchai International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.80 billion	0.74	-$28.66 million	($0.12)	-49.29
China Yuchai International	$22.63 billion	0.06	$45.03 million	N/A	N/A

China Yuchai International has higher revenue and earnings than Custom Truck One Source.

Profitability

This table compares Custom Truck One Source and China Yuchai International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	-1.26%	-5.28%	-1.21%
China Yuchai International	N/A	N/A	N/A

Institutional and Insider Ownership

90.1% of Custom Truck One Source shares are owned by institutional investors. 4.5% of Custom Truck One Source shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Custom Truck One Source beats China Yuchai International on 6 of the 11 factors compared between the two stocks.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.

About China Yuchai International

China Yuchai International Limited, through its subsidiaries, manufactures, assembles, and sells diesel and natural gas engines for trucks, buses and passenger vehicles, marine, industrial, construction, agriculture, and generator set applications in the People’s Republic of China and internationally. It operates through two segments, Yuchai and HLGE. The Yuchai segment manufactures on- and off-road powertrain solutions and applications. The HLGE is engaged in hospitality and property development activities. The company provides diesel engines comprising 4- and 6-cylinder diesel engines, high horsepower marine diesel engines, and power generator engines; natural gas engines, methanol combustion engines, diesel power generators, diesel engine parts, and remanufacturing services; as well as plug in hybrid engines, range extenders, power generation powertrains, hybrid powertrains, integrated electric drive axel powertrains, and fuel cell systems. It also offers maintenance and retrofitting services. It distributes its engines directly to auto original equipment manufacturers, agents, and retailers. The company was founded in 1951 and is based in Singapore.