AB Volvo (OTCMKTS:VLVLY – Get Free Report) and Miller Industries (NYSE:MLR – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.
Profitability
This table compares AB Volvo and Miller Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AB Volvo | 8.32% | 22.17% | 5.92% |
| Miller Industries | 2.08% | 3.70% | 2.58% |
Volatility and Risk
AB Volvo has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AB Volvo | $48.98 billion | 1.39 | $3.52 billion | $2.03 | 16.53 |
| Miller Industries | $745.48 million | 0.76 | $23.01 million | $1.34 | 37.05 |
AB Volvo has higher revenue and earnings than Miller Industries. AB Volvo is trading at a lower price-to-earnings ratio than Miller Industries, indicating that it is currently the more affordable of the two stocks.
Dividends
AB Volvo pays an annual dividend of $0.58 per share and has a dividend yield of 1.7%. Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. AB Volvo pays out 28.6% of its earnings in the form of a dividend. Miller Industries pays out 62.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Miller Industries has increased its dividend for 2 consecutive years. AB Volvo is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of current recommendations and price targets for AB Volvo and Miller Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AB Volvo | 1 | 6 | 0 | 3 | 2.50 |
| Miller Industries | 1 | 1 | 1 | 0 | 2.00 |
Miller Industries has a consensus target price of $50.00, suggesting a potential upside of 0.72%. Given Miller Industries’ higher probable upside, analysts clearly believe Miller Industries is more favorable than AB Volvo.
Insider & Institutional Ownership
0.0% of AB Volvo shares are held by institutional investors. Comparatively, 79.2% of Miller Industries shares are held by institutional investors. 4.5% of Miller Industries 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.
Summary
AB Volvo beats Miller Industries on 12 of the 18 factors compared between the two stocks.
About AB Volvo
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 Miller Industries
Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.
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