The financial health of two companies in the automotive sector, Commercial Vehicle Group (NASDAQ: CVGI) and Service Team (OTCMKTS: SVTE), has come under scrutiny as analysts compare their institutional ownership, risk profiles, earnings, and profitability. This analysis provides insights into which company may offer a more promising investment opportunity.
Institutional Ownership Insights
A significant factor in assessing a company’s potential for growth is its institutional ownership. As of the latest data, Commercial Vehicle Group has 72.3% of its shares held by institutional investors, alongside 4.2% owned by company insiders. In stark contrast, Service Team reports no insider ownership, suggesting a potentially less stable investment environment. Strong institutional backing for Commercial Vehicle Group indicates confidence among large investors regarding its long-term growth trajectory.
Risk and Volatility Comparison
When evaluating the volatility of these companies, Commercial Vehicle Group displays a beta of 1.93, meaning its stock is 93% more volatile than the S&P 500. This high volatility could attract investors looking for potentially higher returns, albeit with increased risk. Conversely, Service Team has a beta of 1.15, indicating that it is 15% more volatile than the S&P 500, suggesting a more moderate risk profile.
Analysts have weighed in on the prospects for both companies, noting that Service Team appears to have a higher probable upside. This perspective is critical for investors seeking growth opportunities in a competitive market.
Earnings and profitability metrics further enhance the comparison between these two companies. While Service Team has lower gross revenue, its earnings per share surpass those of Commercial Vehicle Group. This distinction highlights Service Team’s efficiency in generating profit relative to its revenue, making it an intriguing option for investors prioritizing profitability over sheer revenue figures.
Profitability Metrics
A detailed look at profitability reveals that Commercial Vehicle Group excels in several areas, outperforming Service Team in five out of nine comparative factors. These factors include net margins, return on equity, and return on assets, showcasing Commercial Vehicle Group’s superior operational efficiency.
About Commercial Vehicle Group: Founded in 2000 and headquartered in New Albany, Ohio, Commercial Vehicle Group designs, manufactures, and sells components and systems for the commercial vehicle and industrial automation markets. The company operates across four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. Its products include vehicle seating systems, electrical wire harness assemblies, and various other components.
About Service Team: Established in 2011, Service Team Inc. is based in Villa Park, California, and specializes in manufacturing and repairing truck bodies. The company serves various sectors within the trucking industry, including auto dealers and food distributors, offering products that cater to both dry and refrigerated freight.
In summary, the financial analysis of Commercial Vehicle Group and Service Team presents a mixed outlook. While Commercial Vehicle Group boasts strong institutional support and superior profitability metrics, Service Team offers a compelling growth narrative with higher earnings potential. Investors must weigh their priorities—whether they value stability and established performance or are inclined towards potential growth in a more volatile landscape.
