Analyzing Hyster-Yale Materials Handling (NYSE:HY) and AB Volvo (publ) (OTCMKTS:VOLVF)

AB Volvo (publ) (OTCMKTS:VOLVF) and Hyster-Yale Materials Handling (NYSE:HY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for AB Volvo (publ) and Hyster-Yale Materials Handling, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo (publ)	0	0	0	0	N/A
Hyster-Yale Materials Handling	0	1	2	0	2.67

Hyster-Yale Materials Handling has a consensus target price of $87.00, indicating a potential upside of 39.87%. Given Hyster-Yale Materials Handling’s higher possible upside, analysts plainly believe Hyster-Yale Materials Handling is more favorable than AB Volvo (publ).

Dividends

AB Volvo (publ) pays an annual dividend of C$3.00 per share and has a dividend yield of 11.6%. Hyster-Yale Materials Handling pays an annual dividend of $1.40 per share and has a dividend yield of 2.3%. AB Volvo (publ) pays out 110.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hyster-Yale Materials Handling pays out 16.2% of its earnings in the form of a dividend. Hyster-Yale Materials Handling has increased its dividend for 13 consecutive years.

Insider & Institutional Ownership

24.4% of AB Volvo (publ) shares are held by institutional investors. Comparatively, 46.5% of Hyster-Yale Materials Handling shares are held by institutional investors. 33.9% of Hyster-Yale Materials Handling shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AB Volvo (publ) and Hyster-Yale Materials Handling”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo (publ)	N/A	N/A	N/A	C$2.73	9.51
Hyster-Yale Materials Handling	$4.25 billion	0.26	$125.90 million	$8.63	7.21

Hyster-Yale Materials Handling has higher revenue and earnings than AB Volvo (publ). Hyster-Yale Materials Handling is trading at a lower price-to-earnings ratio than AB Volvo (publ), indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares AB Volvo (publ) and Hyster-Yale Materials Handling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo (publ)	N/A	N/A	N/A
Hyster-Yale Materials Handling	4.13%	44.49%	8.40%

Summary

Hyster-Yale Materials Handling beats AB Volvo (publ) on 11 of the 13 factors compared between the two stocks.

About AB Volvo (publ)

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.

About Hyster-Yale Materials Handling

Hyster-Yale, Inc., through its subsidiaries, designs, engineers, manufactures, sells, and services a line of lift trucks, attachments, and aftermarket parts worldwide. The company manufactures components, such as frames, masts, and transmissions; and assembles lift trucks. It markets its products primarily under the Hyster and Yale brand names to independent Hyster and Yale retail dealerships. The company also sells aftermarket parts under the Hyster and Yale, as well as UNISOURCE and PREMIER brands to Hyster and Yale dealers for the service of competitor lift trucks. In addition, it produces and distributes attachments, forks, and lift tables under the Bolzoni, Auramo, and Meyer brand names; and designs and produces products in the port equipment and rough terrain forklift markets. Further, the company designs, manufactures, and sells hydrogen fuel-cell stacks and engines. It serves light and heavy manufacturers, trucking and automotive companies, rental companies, building materials and paper suppliers, lumber, metal products, warehouses, retailers, food distributors, container handling companies, and U.S. and non-U.S. governmental agencies. The company was formerly known as Hyster-Yale Materials Handling, Inc. and changed its name to Hyster-Yale, Inc. in June 2024. Hyster-Yale, Inc. was incorporated in 1991 and is headquartered in Cleveland, Ohio.