Valeo (OTCMKTS:VLEEY) versus AB Volvo (OTCMKTS:VLVLY) Head-To-Head Survey

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

Volatility and Risk

AB Volvo has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, Valeo has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.47%	22.66%	6.10%
Valeo	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for AB Volvo and Valeo, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	2	2	0	2	2.33
Valeo	0	6	1	1	2.38

Valuation & Earnings

This table compares AB Volvo and Valeo”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$49.84 billion	1.28	$4.77 billion	$2.03	15.49
Valeo	$23.26 billion	0.14	$175.30 million	N/A	N/A

AB Volvo has higher revenue and earnings than Valeo.

Insider & Institutional Ownership

0.0% of AB Volvo shares are owned by institutional investors. Comparatively, 0.0% of Valeo shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

AB Volvo pays an annual dividend of $0.68 per share and has a dividend yield of 2.2%. Valeo pays an annual dividend of $0.18 per share and has a dividend yield of 2.7%. AB Volvo pays out 33.5% of its earnings in the form of a dividend.

Summary

AB Volvo beats Valeo on 7 of the 12 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 Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.