Contrasting PACCAR (NASDAQ:PCAR) & Fisker (NYSE:FSRN)

Fisker (NYSE:FSRN) and PACCAR (NASDAQ:PCAR) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Valuation and Earnings

This table compares Fisker and PACCAR’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fisker	$272.89 million	0.31	-$939.95 million	($2.22)	-0.03
PACCAR	$35.13 billion	1.62	$4.60 billion	$9.64	11.24

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Fisker and PACCAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fisker	0	0	0	0	N/A
PACCAR	0	7	5	1	2.54

PACCAR has a consensus price target of $112.62, suggesting a potential upside of 3.96%. Given PACCAR’s higher possible upside, analysts clearly believe PACCAR is more favorable than Fisker.

Risk & Volatility

Fisker has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500. Comparatively, PACCAR has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500.

Institutional & Insider Ownership

33.6% of Fisker shares are owned by institutional investors. Comparatively, 64.9% of PACCAR shares are owned by institutional investors. 26.3% of Fisker shares are owned by company insiders. Comparatively, 2.0% of PACCAR shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fisker	-278.72%	-161.43%	-23.26%
PACCAR	14.30%	31.71%	12.97%

Summary

PACCAR beats Fisker on 13 of the 14 factors compared between the two stocks.

About Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.

About PACCAR

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.