Contrasting Cooper-Standard (NYSE:CPS) & Custom Truck One Source (NYSE:CTOS)

Cooper-Standard (NYSE:CPS) and Custom Truck One Source (NYSE:CTOS) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

69.1% of Cooper-Standard shares are owned by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are owned by institutional investors. 9.2% of Cooper-Standard shares are owned by company insiders. Comparatively, 4.7% of Custom Truck One Source shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Cooper-Standard and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cooper-Standard	-1.41%	N/A	-2.15%
Custom Truck One Source	-0.88%	-2.18%	-0.49%

Analyst Recommendations

This is a summary of current ratings for Cooper-Standard and Custom Truck One Source, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cooper-Standard	2	1	1	0	1.75
Custom Truck One Source	2	1	4	0	2.29

Cooper-Standard currently has a consensus target price of $49.33, suggesting a potential upside of 73.00%. Custom Truck One Source has a consensus target price of $9.33, suggesting a potential upside of 1.17%. Given Cooper-Standard’s higher probable upside, research analysts clearly believe Cooper-Standard is more favorable than Custom Truck One Source.

Valuation & Earnings

This table compares Cooper-Standard and Custom Truck One Source”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cooper-Standard	$2.74 billion	0.18	-$4.16 million	($2.18)	-13.08
Custom Truck One Source	$1.94 billion	1.08	-$31.05 million	($0.09)	-102.50

Cooper-Standard has higher revenue and earnings than Custom Truck One Source. Custom Truck One Source is trading at a lower price-to-earnings ratio than Cooper-Standard, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Cooper-Standard has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

About Cooper-Standard

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.

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.