ECD Automotive Design (NASDAQ:ECDA) vs. PACCAR (NASDAQ:PCAR) Critical Comparison

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

Profitability

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

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

Valuation and Earnings

This table compares ECD Automotive Design and PACCAR”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECD Automotive Design	$20.31 million	1.14	-$1.60 million	N/A	N/A
PACCAR	$33.66 billion	1.51	$4.16 billion	$7.91	12.25

PACCAR has higher revenue and earnings than ECD Automotive Design.

Insider and Institutional Ownership

94.8% of ECD Automotive Design shares are held by institutional investors. Comparatively, 64.9% of PACCAR shares are held by institutional investors. 77.3% of ECD Automotive Design shares are held by insiders. Comparatively, 2.0% of PACCAR shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ECD Automotive Design and PACCAR, as provided by MarketBeat.com.

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

PACCAR has a consensus target price of $118.38, indicating a potential upside of 22.15%. Given PACCAR’s stronger consensus rating and higher probable upside, analysts plainly 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 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.

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.