VinFast Auto (NASDAQ:VFS) versus PACCAR (NASDAQ:PCAR) Financial Contrast

PACCAR (NASDAQ:PCARGet Free Report) and VinFast Auto (NASDAQ:VFSGet Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for PACCAR and VinFast Auto, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PACCAR 0 9 4 0 2.31
VinFast Auto 0 0 4 0 3.00

PACCAR presently has a consensus price target of $114.18, suggesting a potential upside of 9.50%. VinFast Auto has a consensus price target of $9.00, suggesting a potential upside of 136.84%. Given VinFast Auto’s stronger consensus rating and higher probable upside, analysts clearly believe VinFast Auto is more favorable than PACCAR.

Insider and Institutional Ownership

64.9% of PACCAR shares are held by institutional investors. 2.0% of PACCAR shares are held by insiders. Comparatively, 16.2% of VinFast Auto shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares PACCAR and VinFast Auto’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PACCAR 13.51% 27.24% 11.37%
VinFast Auto -187.34% N/A -46.50%

Earnings & Valuation

This table compares PACCAR and VinFast Auto”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PACCAR $34.83 billion 1.57 $4.60 billion $8.95 11.65
VinFast Auto $33,995.03 billion 0.00 -$2.40 billion ($0.82) -4.63

PACCAR has higher earnings, but lower revenue than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than PACCAR, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

PACCAR has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Summary

PACCAR beats VinFast Auto on 9 of the 13 factors compared between the two stocks.

About PACCAR

(Get Free Report)

PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.

About VinFast Auto

(Get Free Report)

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.

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