Analyzing Federal Signal (NYSE:FSS) and Fisker (NYSE:FSRN)

Federal Signal (NYSE:FSSGet Free Report) and Fisker (NYSE:FSRNGet Free Report) are both multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

Federal Signal has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Fisker has a beta of 0.13, indicating that its share price is 87% less volatile than the S&P 500.

Earnings and Valuation

This table compares Federal Signal and Fisker’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Federal Signal $1.72 billion 3.06 $157.40 million $2.96 29.19
Fisker $272.89 million 0.34 -$939.95 million ($2.22) -0.03

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

Insider & Institutional Ownership

92.7% of Federal Signal shares are owned by institutional investors. Comparatively, 33.6% of Fisker shares are owned by institutional investors. 3.1% of Federal Signal shares are owned by insiders. Comparatively, 26.3% of Fisker shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Federal Signal and Fisker, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Signal 0 1 0 1 3.00
Fisker 0 0 0 0 N/A

Federal Signal presently has a consensus target price of $70.50, suggesting a potential downside of 18.41%. Given Federal Signal’s higher probable upside, equities analysts clearly believe Federal Signal is more favorable than Fisker.

Profitability

This table compares Federal Signal and Fisker’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%
Fisker -278.72% -161.43% -23.26%

Summary

Federal Signal beats Fisker on 12 of the 13 factors compared between the two stocks.

About Federal Signal

(Get Free Report)

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 Fisker

(Get Free Report)

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.

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