Comparing Custom Truck One Source (NYSE:CTOS) & Federal Screw Works (OTCMKTS:FSCR)

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

Analyst Ratings

This is a summary of current ratings and price targets for Custom Truck One Source and Federal Screw Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Custom Truck One Source	2	1	4	0	2.29
Federal Screw Works	0	0	0	0	0.00

Custom Truck One Source presently has a consensus target price of $10.14, suggesting a potential upside of 3.80%. Given Custom Truck One Source’s stronger consensus rating and higher possible upside, equities analysts plainly believe Custom Truck One Source is more favorable than Federal Screw Works.

Institutional & Insider Ownership

90.1% of Custom Truck One Source shares are held by institutional investors. 4.7% of Custom Truck One Source shares are held by company insiders. Comparatively, 46.2% of Federal Screw Works shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Custom Truck One Source and Federal Screw Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Custom Truck One Source	-0.88%	-2.18%	-0.49%
Federal Screw Works	0.99%	N/A	N/A

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Custom Truck One Source	$1.98 billion	1.12	-$31.05 million	($0.09)	-108.58
Federal Screw Works	$97.55 million	0.11	$1.62 million	$0.71	10.77

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

Volatility and Risk

Custom Truck One Source has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Federal Screw Works has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.

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.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.