AB SKF (OTCMKTS:SKFRY – Get Free Report) and Commercial Vehicle Group (NASDAQ:CVGI – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.
Institutional & Insider Ownership
0.1% of AB SKF shares are owned by institutional investors. Comparatively, 72.3% of Commercial Vehicle Group shares are owned by institutional investors. 15.6% of Commercial Vehicle Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Profitability
This table compares AB SKF and Commercial Vehicle Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB SKF | 5.66% | 12.96% | 6.73% |
| Commercial Vehicle Group | -1.43% | -9.62% | -3.06% |
Volatility and Risk
AB SKF has a beta of 1.23, meaning that its share price is 23% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Earnings and Valuation
This table compares AB SKF and Commercial Vehicle Group”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AB SKF | $9.36 billion | 1.36 | $401.34 million | $1.12 | 25.05 |
| Commercial Vehicle Group | $649.00 million | 0.21 | -$22.78 million | ($0.67) | -4.99 |
AB SKF has higher revenue and earnings than Commercial Vehicle Group. Commercial Vehicle Group is trading at a lower price-to-earnings ratio than AB SKF, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of current ratings for AB SKF and Commercial Vehicle Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB SKF | 1 | 4 | 1 | 0 | 2.00 |
| Commercial Vehicle Group | 1 | 0 | 2 | 0 | 2.33 |
Commercial Vehicle Group has a consensus target price of $6.00, indicating a potential upside of 79.64%. Given Commercial Vehicle Group’s stronger consensus rating and higher probable upside, analysts plainly believe Commercial Vehicle Group is more favorable than AB SKF.
Summary
AB SKF beats Commercial Vehicle Group on 7 of the 13 factors compared between the two stocks.
About AB SKF
AB SKF (publ) designs, manufactures, and sells bearings and units, seals, lubrication systems, condition monitoring, and services worldwide. It operates in two segments, Industrial and Automotive. The company offers rolling, mounted and housings, super-precision, slewing, plain, magnetic, and thin section bearings; industrial and automotive seals; lubricants, manual lubrication tools, lubricators, automatic lubrication systems, and lubrication system components; maintenance products, such as hydraulic, mechanical, and alignment tools, as well as heaters; belts, pulleys, chains, sprockets, bushings and hubs, couplings, and bolts and tightening systems; condition monitoring systems; test and measuring equipment, such as waviness and roundness analyzers, noise and vibration testers, and grease test rigs, as well as calibration with traceability, machine training and support, and upgrades and refurbishment services; and vehicle aftermarket products. It also provides application engineering services consisting of technical consultancy, numerical simulation and design, and root cause analysis; asset management services, such as assessment and benchmarking, maintenance strategy review, spare parts and inventory management, and lubrication management; condition-based maintenance, including vibration analysis and diagnostics, thermography, lubrication analysis, and condition monitoring system installation; mechanical maintenance comprising mounting and dismounting, precision alignment, and balancing; remanufacturing and customization; and training solutions, which include instructor-led training, e-learning courses, and webinar recordings. The company serves the aerospace, agriculture, automotive, construction, food and beverage, general machinery, machine tools, marine, material handling, metals, mining, mineral processing, ocean energy, pulp and paper, railways, and wind industries. AB SKF (publ) was incorporated in 1907 and is headquartered in Gothenburg, Sweden.
About Commercial Vehicle Group
Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.
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