Critical Survey: PACCAR (NASDAQ:PCAR) and ECD Automotive Design (NASDAQ:ECDA)

PACCAR (NASDAQ:PCAR) and ECD Automotive Design (NASDAQ:ECDA) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Profitability

This table compares PACCAR and ECD Automotive Design’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PACCAR	12.36%	23.53%	9.89%
ECD Automotive Design	N/A	N/A	N/A

Earnings & Valuation

This table compares PACCAR and ECD Automotive Design”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PACCAR	$33.66 billion	1.51	$4.16 billion	$7.91	12.28
ECD Automotive Design	$25.73 million	1.06	-$1.60 million	N/A	N/A

PACCAR has higher revenue and earnings than ECD Automotive Design.

Institutional and Insider Ownership

64.9% of PACCAR shares are owned by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are owned by institutional investors. 2.0% of PACCAR shares are owned by insiders. Comparatively, 77.3% of ECD Automotive Design shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

PACCAR has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.59, indicating that its stock price is 259% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PACCAR and ECD Automotive Design, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PACCAR	0	8	6	1	2.53
ECD Automotive Design	0	0	0	0	0.00

PACCAR currently has a consensus price target of $118.23, suggesting a potential upside of 21.75%. Given PACCAR’s stronger consensus rating and higher probable upside, research analysts clearly believe PACCAR is more favorable than ECD Automotive Design.

Summary

PACCAR beats ECD Automotive Design on 11 of the 13 factors compared between the two stocks.

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.

About ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.