Head-To-Head Analysis: Workhorse Group (NASDAQ:WKHS) vs. Custom Truck One Source (NYSE:CTOS)

Workhorse Group (NASDAQ:WKHS) and Custom Truck One Source (NYSE:CTOS) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Profitability

This table compares Workhorse Group and Custom Truck One Source’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Workhorse Group	-363.15%	-239.58%	-68.70%
Custom Truck One Source	-1.60%	-3.88%	-0.88%

Analyst Ratings

This is a breakdown of current ratings for Workhorse Group and Custom Truck One Source, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Workhorse Group	1	0	0	0	1.00
Custom Truck One Source	2	2	3	0	2.14

Custom Truck One Source has a consensus price target of $7.40, suggesting a potential upside of 1.86%. Given Custom Truck One Source’s stronger consensus rating and higher probable upside, analysts plainly believe Custom Truck One Source is more favorable than Workhorse Group.

Risk and Volatility

Workhorse Group has a beta of 2.64, meaning that its share price is 164% more volatile than the S&P 500. Comparatively, Custom Truck One Source has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Insider and Institutional Ownership

16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 90.1% of Custom Truck One Source shares are held by institutional investors. 1.9% of Workhorse Group shares are held by insiders. Comparatively, 4.5% of Custom Truck One Source shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Workhorse Group and Custom Truck One Source”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Workhorse Group	$21.21 million	1.35	-$64.09 million	($84.69)	-0.03
Custom Truck One Source	$1.94 billion	0.85	-$31.05 million	($0.15)	-48.43

Custom Truck One Source has higher revenue and earnings than Workhorse Group. Custom Truck One Source is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.

Summary

Custom Truck One Source beats Workhorse Group on 11 of the 14 factors compared between the two stocks.

About Workhorse Group

Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.

About Custom Truck One Source

Custom Truck One Source, Inc. provides specialty equipment rental and sale services to the electric utility transmission and distribution, telecommunications, rail, forestry, waste management, and other infrastructure-related industries in the United States and Canada. The company operates through three segments: Equipment Rental Solutions (ERS), Truck and Equipment Sales (TES), and Aftermarket Parts and Services (APS). The ERS segment owns new and used specialty equipment, including truck-mounted aerial lifts, cranes, service trucks, dump trucks, trailers, digger derricks, and other machinery and equipment. The TES segment offers new equipment for sale to be used for end-markets, which can be modified to meet customers specific needs. The APS segment provides truck and equipment maintenance and repair services; and rents and sells specialized tools, including stringing blocks, insulated hot stick, and rigging equipment, as well as sale of specialized aftermarket parts. The company was formerly known as Nesco Holdings, Inc. and changed its name to Custom Truck One Source, Inc. in April 2021. Custom Truck One Source, Inc. was founded in 1988 and is headquartered in Kansas City, Missouri.