VinFast Auto (NASDAQ:VFS – Get Free Report) and Federal Signal (NYSE:FSS – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, valuation and risk.
Insider & Institutional Ownership
92.7% of Federal Signal shares are held by institutional investors. 16.2% of VinFast Auto shares are held by company insiders. Comparatively, 3.1% of Federal Signal shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility and Risk
VinFast Auto has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, Federal Signal has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| VinFast Auto | 0 | 0 | 4 | 0 | 3.00 |
| Federal Signal | 0 | 1 | 1 | 1 | 3.00 |
VinFast Auto currently has a consensus price target of $9.50, suggesting a potential upside of 109.25%. Federal Signal has a consensus price target of $70.50, suggesting a potential downside of 23.35%. Given VinFast Auto’s higher probable upside, analysts clearly believe VinFast Auto is more favorable than Federal Signal.
Valuation & Earnings
This table compares VinFast Auto and Federal Signal’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| VinFast Auto | $34,011.75 billion | 0.00 | -$2.40 billion | ($0.82) | -5.54 |
| Federal Signal | $1.72 billion | 3.26 | $157.40 million | $2.96 | 31.07 |
Federal Signal has lower revenue, but higher earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares VinFast Auto and Federal Signal’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| VinFast Auto | N/A | N/A | -44.67% |
| Federal Signal | 10.31% | 17.36% | 10.35% |
Summary
Federal Signal beats VinFast Auto on 10 of the 14 factors compared between the two stocks.
About VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
About Federal Signal
Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.
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