Analyzing AB Volvo (OTCMKTS:VLVLY) & ECARX (NASDAQ:ECX)

ECARX (NASDAQ:ECX) and AB Volvo (OTCMKTS:VLVLY) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ECARX and AB Volvo, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECARX	1	1	0	0	1.50
AB Volvo	1	6	0	4	2.64

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ECARX	-2.25%	N/A	-2.75%
AB Volvo	7.60%	20.16%	5.45%

Institutional and Insider Ownership

0.0% of AB Volvo shares are owned by institutional investors. 20.0% of ECARX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares ECARX and AB Volvo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECARX	$847.90 million	0.47	-$66.04 million	($0.05)	-22.30
AB Volvo	$48.98 billion	1.49	$3.52 billion	$1.88	19.08

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

Risk & Volatility

ECARX has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, AB Volvo has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Summary

AB Volvo beats ECARX on 12 of the 13 factors compared between the two stocks.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.

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.