Reviewing Exco Technologies (OTCMKTS:EXCOF) and AB Volvo (OTCMKTS:VLVLY)

AB Volvo (OTCMKTS:VLVLY) and Exco Technologies (OTCMKTS:EXCOF) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings for AB Volvo and Exco Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AB Volvo	1	6	0	4	2.64
Exco Technologies	0	0	0	0	0.00

Insider & Institutional Ownership

0.0% of AB Volvo shares are held by institutional investors. Comparatively, 13.7% of Exco Technologies shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares AB Volvo and Exco Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AB Volvo	7.60%	20.16%	5.45%
Exco Technologies	N/A	N/A	N/A

Dividends

AB Volvo pays an annual dividend of $0.58 per share and has a dividend yield of 1.6%. Exco Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. AB Volvo pays out 30.9% of its earnings in the form of a dividend. Exco Technologies pays out 25.2% 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. Exco Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares AB Volvo and Exco Technologies”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AB Volvo	$48.98 billion	1.53	$3.52 billion	$1.88	19.63
Exco Technologies	N/A	N/A	N/A	$0.80	7.69

AB Volvo has higher revenue and earnings than Exco Technologies. Exco Technologies is trading at a lower price-to-earnings ratio than AB Volvo, indicating that it is currently the more affordable of the two stocks.

Summary

AB Volvo beats Exco Technologies on 8 of the 11 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 Exco Technologies

Exco Technologies Limited, together with its subsidiaries, designs, develops, manufactures, and sells dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. It operates through two segments, Casting and Extrusion, and Automotive Solutions. The Casting and Extrusion segment designs, develops, and manufactures tooling and consumable parts for aluminum die-casting and aluminum extrusion machines. The Automotive Solutions segment produces automotive interior trim components and assemblies primarily for passenger and light truck vehicles. It offers synthetic net and other cargo restraint products, injection-molded components, shift/brake boots, instrument panel components, sun visors, seat covers, head rests, other cut and sew products, and related interior trim components and assemblies. This segment also supplies plastic trunk trays and organizer systems, floor mats, bumper covers, die cut leather sets for seating applications, and other interior trim applications, as well as injection-molded, hand-sewn, machine-sewn, and hand-wrapped interior trim components of all sorts. The company has operations in Canada, the United States, Europe, Mexico, Morocco, Asia, and internationally. Exco Technologies Limited was founded in 1952 and is based in Markham, Canada.