Reviewing AB Volvo (OTCMKTS:VLVLY) and Camping World (NYSE:CWH)

AB Volvo (OTCMKTS:VLVLY) and Camping World (NYSE:CWH) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AB Volvo	8.47%	22.61%	6.11%
Camping World	-0.13%	-2.81%	-0.23%

Volatility and Risk

AB Volvo has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Camping World has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of AB Volvo shares are owned by institutional investors. Comparatively, 52.5% of Camping World shares are owned by institutional investors. 35.6% of Camping World shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers 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 2.5%. Camping World pays an annual dividend of $0.50 per share and has a dividend yield of 3.3%. AB Volvo pays out 33.5% of its earnings in the form of a dividend. Camping World pays out -250.0% 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. Camping World has raised its dividend for 1 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AB Volvo and Camping World, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	2	1	1	2.40
Camping World	1	3	8	0	2.58

Camping World has a consensus target price of $21.78, suggesting a potential upside of 42.62%. Given Camping World’s stronger consensus rating and higher probable upside, analysts plainly believe Camping World is more favorable than AB Volvo.

Valuation and Earnings

This table compares AB Volvo and Camping World”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	1.11	$4.77 billion	$2.03	13.34
Camping World	$6.10 billion	0.26	-$38.64 million	($0.20)	-76.35

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

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.