Federal Signal (NYSE:FSS – Get Free Report) and Vicinity Motor (NASDAQ:VEV – Get Free Report) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.
Profitability
This table compares Federal Signal and Vicinity Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Signal | 10.31% | 17.36% | 10.35% |
| Vicinity Motor | -60.46% | -68.36% | -24.47% |
Earnings & Valuation
This table compares Federal Signal and Vicinity Motor’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Signal | $1.72 billion | 2.96 | $157.40 million | $2.96 | 28.19 |
| Vicinity Motor | $19.05 million | 0.92 | -$16.63 million | ($0.40) | -0.96 |
Risk and Volatility
Federal Signal has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Vicinity Motor has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Insider & Institutional Ownership
92.7% of Federal Signal shares are held by institutional investors. Comparatively, 0.3% of Vicinity Motor shares are held by institutional investors. 3.1% of Federal Signal shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and target prices for Federal Signal and Vicinity Motor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Signal | 0 | 1 | 1 | 1 | 3.00 |
| Vicinity Motor | 0 | 0 | 0 | 0 | N/A |
Federal Signal presently has a consensus price target of $70.50, suggesting a potential downside of 15.52%. Given Federal Signal’s higher possible upside, analysts clearly believe Federal Signal is more favorable than Vicinity Motor.
Summary
Federal Signal beats Vicinity Motor on 14 of the 14 factors compared between the two stocks.
About Federal Signal
Federal Signal Corp. engages in the design and manufacture of products and integrated solutions for municipal, governmental, industrial, and commercial customers. It operates through the Environmental Solutions Group and Safety and Security Systems Group segments. The Environment Solutions Group segment is involved in the manufacture and supply of street sweeper vehicles, sewer cleaners, vacuum loader trucks, hydro-excavation trucks, and water blasting equipment. The Safety and Security Systems Group segment offers comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities, and industrial sites use to protect people and property. The company was founded in 1901 and is headquartered in Oak Brook, IL.
About Vicinity Motor
Vicinity Motor Corp. designs, builds, and distributes a suite of transit buses for public and commercial use under the Vicinity brand in the United States and Canada. It offers electric, CNG, and clean diesel buses, as well as electric trucks and spare parts. The company was formerly known as Grande West Transportation Group Inc. and changed its name to Vicinity Motor Corp. in March 2021. The company was founded in 2008 and is headquartered in Aldergrove, Canada.
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