Custom Truck One Source (NYSE:CTOS – Get Free Report) and Workhorse Group (NASDAQ:WKHS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Analyst Ratings
This is a breakdown of current ratings and price targets for Custom Truck One Source and Workhorse Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Custom Truck One Source | 2 | 2 | 3 | 0 | 2.14 |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
Custom Truck One Source presently has a consensus price target of $7.40, suggesting a potential downside of 2.70%. Given Custom Truck One Source’s stronger consensus rating and higher possible upside, analysts clearly believe Custom Truck One Source is more favorable than Workhorse Group.
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Custom Truck One Source | $1.94 billion | 0.89 | -$31.05 million | ($0.15) | -50.70 |
| Workhorse Group | $21.21 million | 1.38 | -$64.09 million | ($84.69) | -0.03 |
Custom Truck One Source has higher revenue and earnings than Workhorse Group. Custom Truck One Source is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Custom Truck One Source has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.64, indicating that its stock price is 164% more volatile than the S&P 500.
Insider and Institutional Ownership
90.1% of Custom Truck One Source shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 4.5% of Custom Truck One Source shares are owned by company insiders. Comparatively, 1.9% of Workhorse Group shares are owned by company insiders. 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.
Profitability
This table compares Custom Truck One Source and Workhorse Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Custom Truck One Source | -1.60% | -3.88% | -0.88% |
| Workhorse Group | -363.15% | -239.58% | -68.70% |
Summary
Custom Truck One Source beats Workhorse Group on 11 of the 14 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 Workhorse Group
Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.
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