Contrasting Solid Power (NASDAQ:SLDP) and Custom Truck One Source (NYSE:CTOS)

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

Risk and Volatility

Solid Power has a beta of 1.77, meaning that its stock price is 77% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.

Profitability

This table compares Solid Power and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Solid Power	-412.62%	-23.13%	-21.54%
Custom Truck One Source	-1.89%	-6.61%	-1.54%

Earnings and Valuation

This table compares Solid Power and Custom Truck One Source”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Solid Power	$20.14 million	38.88	-$96.52 million	($0.52)	-8.31
Custom Truck One Source	$1.80 billion	0.82	-$28.66 million	($0.16)	-40.75

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

Insider & Institutional Ownership

33.7% of Solid Power shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 4.9% of Solid Power shares are held by company insiders. Comparatively, 4.5% of Custom Truck One Source shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Solid Power and Custom Truck One Source, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Solid Power	1	0	1	0	2.00
Custom Truck One Source	2	2	2	0	2.00

Solid Power currently has a consensus price target of $4.00, suggesting a potential downside of 7.41%. Custom Truck One Source has a consensus price target of $6.38, suggesting a potential downside of 2.22%. Given Custom Truck One Source’s higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than Solid Power.

Summary

Custom Truck One Source beats Solid Power on 9 of the 13 factors compared between the two stocks.

About Solid Power

Solid Power, Inc. develops solid state battery technologies for the electric vehicles (EV) and other markets in the United States. The company sells its sulfide-based solid electrolyte; and licenses its solid-state cell designs and manufacturing processes. It also produces and sells 0.2, 2, 20 ampere-hour (Ah), and EV cells. Solid Power, Inc. was founded in 2011 and is headquartered in Louisville, Colorado.

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.