Federal Signal (NYSE:FSS – Get Free Report) and VinFast Auto (NASDAQ:VFS – Get Free Report) are both multi-sector conglomerates companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.
Risk & Volatility
Federal Signal has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, VinFast Auto has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
Profitability
This table compares Federal Signal and VinFast Auto’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% |
| VinFast Auto | N/A | N/A | -44.67% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Signal | $1.72 billion | 2.96 | $157.40 million | $2.96 | 28.22 |
| VinFast Auto | $1.20 billion | N/A | -$2.40 billion | ($0.82) | -5.24 |
Federal Signal has higher revenue and earnings than VinFast Auto. VinFast Auto is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Federal Signal and VinFast Auto, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Signal | 0 | 1 | 1 | 1 | 3.00 |
| VinFast Auto | 0 | 0 | 4 | 0 | 3.00 |
Federal Signal currently has a consensus price target of $70.50, suggesting a potential downside of 15.61%. VinFast Auto has a consensus price target of $9.75, suggesting a potential upside of 126.74%. Given VinFast Auto’s higher possible upside, analysts plainly believe VinFast Auto is more favorable than Federal Signal.
Institutional & Insider Ownership
92.7% of Federal Signal shares are owned by institutional investors. 3.1% of Federal Signal shares are owned by company insiders. Comparatively, 16.2% of VinFast Auto shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
Federal Signal beats VinFast Auto on 9 of the 12 factors compared between the two stocks.
About Federal Signal
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 VinFast Auto
VinFast Auto Ltd. engages in the design and manufacture of electric vehicles (EV), e-scooters, and e-buses in Vietnam, Canada, and the United States. The company operates through three segments: Automobiles, E-scooter, and Spare Parts & Aftermarket Services. The Automobiles segment offers design, development, manufacturing, and sale of cars and electric buses, and related battery lease and battery charging services for electric cars and buses. The E-scooter segment provides design, development, manufacturing, and sales of e-scooters, and related battery lease and battery charging service for e-scooters. The Spare Parts, and Aftermarket Services segment engages in sale of spare parts and aftermarket services for automobiles and e-scooters. VinFast Auto Ltd. is based in Hai Phong City, Vietnam. VinFast Auto Ltd. is a subsidiary of Vingroup Joint Stock Company.
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