Polestar Automotive Holding UK (NASDAQ:PSNY) versus AB Volvo (publ) (OTCMKTS:VLVLY) Critical Analysis

AB Volvo (publ) (OTCMKTS:VLVLYGet Free Report) and Polestar Automotive Holding UK (NASDAQ:PSNYGet Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for AB Volvo (publ) and Polestar Automotive Holding UK, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AB Volvo (publ) 0 5 2 1 2.50
Polestar Automotive Holding UK 2 3 1 0 1.83

Polestar Automotive Holding UK has a consensus target price of $1.58, indicating a potential upside of 29.51%. Given Polestar Automotive Holding UK’s higher probable upside, analysts clearly believe Polestar Automotive Holding UK is more favorable than AB Volvo (publ).

Valuation & Earnings

This table compares AB Volvo (publ) and Polestar Automotive Holding UK”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AB Volvo (publ) $52.11 billion 1.00 $4.70 billion $2.42 10.55
Polestar Automotive Holding UK $2.06 billion 1.27 -$1.19 billion ($0.57) -2.14

AB Volvo (publ) has higher revenue and earnings than Polestar Automotive Holding UK. Polestar Automotive Holding UK 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.

Volatility and Risk

AB Volvo (publ) has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500.

Profitability

This table compares AB Volvo (publ) and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AB Volvo (publ) 9.64% 29.91% 7.39%
Polestar Automotive Holding UK N/A N/A N/A

Institutional & Insider Ownership

0.0% of AB Volvo (publ) shares are held by institutional investors. Comparatively, 1.0% of Polestar Automotive Holding UK shares are held by institutional investors. 0.0% of Polestar Automotive Holding UK shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

AB Volvo (publ) beats Polestar Automotive Holding UK on 10 of the 15 factors compared between the two stocks.

About AB Volvo (publ)

(Get Free Report)

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 Polestar Automotive Holding UK

(Get Free Report)

Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.

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