Head-To-Head Analysis: Custom Truck One Source (NYSE:CTOS) & Adient (NYSE:ADNT)

Adient (NYSE:ADNT) and Custom Truck One Source (NYSE:CTOS) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Profitability

This table compares Adient and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Adient	0.39%	7.28%	1.67%
Custom Truck One Source	-0.88%	-2.18%	-0.49%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Adient and Custom Truck One Source, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Adient	1	6	5	0	2.33
Custom Truck One Source	2	1	4	0	2.29

Adient presently has a consensus target price of $28.00, indicating a potential upside of 30.98%. Custom Truck One Source has a consensus target price of $10.14, indicating a potential downside of 1.54%. Given Adient’s stronger consensus rating and higher possible upside, research analysts clearly believe Adient is more favorable than Custom Truck One Source.

Earnings & Valuation

This table compares Adient and Custom Truck One Source”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Adient	$14.94 billion	0.11	-$281.00 million	$0.71	30.11
Custom Truck One Source	$1.94 billion	1.20	-$31.05 million	($0.09)	-114.46

Custom Truck One Source has lower revenue, but higher earnings than Adient. Custom Truck One Source is trading at a lower price-to-earnings ratio than Adient, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Adient has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.

Insider & Institutional Ownership

92.4% of Adient shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 0.9% of Adient shares are held by insiders. Comparatively, 4.7% of Custom Truck One Source shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Adient beats Custom Truck One Source on 11 of the 14 factors compared between the two stocks.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.