Federal Signal (FSS) vs. Daimler (DDAIF) Critical Review

Federal Signal (NYSE: FSS) and Daimler (OTCMKTS:DDAIF) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Federal Signal and Daimler, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal Signal 0 1 1 0 2.50
Daimler 0 1 3 0 2.75

Earnings & Valuation

This table compares Federal Signal and Daimler’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Federal Signal $898.50 million 1.58 $61.60 million $0.85 27.88
Daimler $185.63 billion 0.42 $11.90 billion $11.12 6.54

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

Profitability

This table compares Federal Signal and Daimler’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal Signal 6.93% 12.83% 5.67%
Daimler 6.10% 16.52% 4.11%

Insider & Institutional Ownership

85.1% of Federal Signal shares are held by institutional investors. Comparatively, 0.0% of Daimler shares are held by institutional investors. 4.3% of Federal Signal shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Federal Signal pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Daimler does not pay a dividend. Federal Signal pays out 37.6% of its earnings in the form of a dividend.

Volatility and Risk

Federal Signal has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Daimler has a beta of 1.63, indicating that its share price is 63% more volatile than the S&P 500.

Summary

Daimler beats Federal Signal on 8 of the 15 factors compared between the two stocks.

About Federal Signal

Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, and water blasting equipment under the Elgin, Vactor, Guzzler, Westech, and Jetstream brand names. Is also manufactures dump truck bodies and trailers for maintenance and infrastructure end-markets under the Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, and Travis brand names. In addition, this segment engages in the sale of parts, service and repair, equipment rental, and training activities under the FS Solutions brand. The Safety and Security Systems Group segment provides systems and products for campus and community alerting, emergency vehicles, first responder interoperable communications, and industrial communications, as well as command and municipal networked security. Its products include vehicle lightbars and sirens, public warning sirens, general alarm systems, public address systems, and public safety software. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brand names. The company sells its products through wholesaler, distributor, independent manufacturer representative, original equipment manufacturer, and direct sales force, as well as independent foreign distributor. Federal Signal Corporation was founded in 1901 and is headquartered in Oak Brook, Illinois.

About Daimler

Daimler AG engages in the production and distribution of cars, trucks, and vans. It operates through the following segments: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services. The Mercedes-Benz Cars segment sells passenger cars and off-road vehicles under the Mercedes-Benz brand and small cars under the smart brand. The Daimler Trucks distributes its trucks under the brand names Mercedes-Benz, Freightliner, FUSO, Western Star, and BharatBenz. The Mercedes-Benz Vans segment manufactures commercial vans such as Sprinter large van, the Vito mid-size van, and the Mecedez-Benz Citan urban delivery van. The Daimler Buses segment trades city and intercity buses, coaches, and bus chassis under the Mercedes-Benz and Setra brands. The Daimler Financial Services segment consists of tailored financing and leasing packages for customers and dealers. It also provides services such as insurance, fleet management, investment products, and credit cards. The company was founded by Gottlieb Daimler and Carl Benz in 1926 and is headquartered in Stuttgart, Germany.

Receive News & Ratings for Federal Signal Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Federal Signal and related companies with MarketBeat.com's FREE daily email newsletter.

Comments

Leave a Reply


share news on Facebook
tweet this investment news
share on linkedin
share on StockTwits
share on Google Plus
share on reddit