Financial Comparison: AB Volvo (OTCMKTS:VLVLY) versus Aisin Seiki (OTCMKTS:ASEKY)

AB Volvo (OTCMKTS:VLVLY) and Aisin Seiki (OTCMKTS:ASEKY) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.

Earnings and Valuation

This table compares AB Volvo and Aisin Seiki”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.60	$3.52 billion	$2.04	18.93
Aisin Seiki	$32.15 billion	0.39	$699.31 million	$1.46	11.30

AB Volvo has higher revenue and earnings than Aisin Seiki. Aisin Seiki is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.

Dividends

AB Volvo pays an annual dividend of $0.68 per share and has a dividend yield of 1.8%. Aisin Seiki pays an annual dividend of $0.23 per share and has a dividend yield of 1.4%. AB Volvo pays out 33.3% of its earnings in the form of a dividend. Aisin Seiki pays out 15.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional & Insider Ownership

0.0% of AB Volvo shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

AB Volvo has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Profitability

This table compares AB Volvo and Aisin Seiki’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.47%	23.01%	6.14%
Aisin Seiki	3.26%	7.21%	3.86%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for AB Volvo and Aisin Seiki, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	2	5	0	2	2.22
Aisin Seiki	0	1	0	0	2.00

Summary

AB Volvo beats Aisin Seiki on 13 of the 14 factors compared between the two stocks.

About AB Volvo

AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.