The Shyft Group (NASDAQ:SHYF – Get Free Report) and ECD Automotive Design (NASDAQ:ECDA – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.
Volatility and Risk
The Shyft Group has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -1.49, suggesting that its stock price is 249% less volatile than the S&P 500.
Profitability
This table compares The Shyft Group and ECD Automotive Design’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| The Shyft Group | -0.48% | 1.01% | 0.48% |
| ECD Automotive Design | N/A | N/A | N/A |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| The Shyft Group | 0 | 0 | 2 | 0 | 3.00 |
| ECD Automotive Design | 0 | 0 | 1 | 0 | 3.00 |
The Shyft Group presently has a consensus target price of $15.50, suggesting a potential upside of 28.95%. ECD Automotive Design has a consensus target price of $9.00, suggesting a potential upside of 963.08%. Given ECD Automotive Design’s higher possible upside, analysts plainly believe ECD Automotive Design is more favorable than The Shyft Group.
Insider and Institutional Ownership
85.8% of The Shyft Group shares are held by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are held by institutional investors. 2.5% of The Shyft Group shares are held by insiders. Comparatively, 77.3% of ECD Automotive Design shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares The Shyft Group and ECD Automotive Design”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| The Shyft Group | $872.20 million | 0.48 | $6.50 million | ($0.12) | -100.17 |
| ECD Automotive Design | $15.12 million | 1.94 | -$1.60 million | N/A | N/A |
The Shyft Group has higher revenue and earnings than ECD Automotive Design.
Summary
The Shyft Group beats ECD Automotive Design on 6 of the 11 factors compared between the two stocks.
About The Shyft Group
The Shyft Group, Inc. engages in the manufacture and assembly of specialty vehicles for the commercial and recreational vehicle industries in the United States and internationally. It operates in two segments, Fleet Vehicles and Services, and Specialty Vehicles. The Fleet Vehicles and Services segment offers commercial vehicles used in the e-commerce/last mile/parcel delivery, beverage and grocery delivery, laundry and linen, mobile retail, and trades and construction industries. This segment markets its commercial vehicles, including walk-in vans, cutaway vans, and truck bodies under the Aeromaster, Velocity, Trademaster, and Utilivan brands; and vocation-specific equipment upfit services under the Utilimaster Upfit Services and Strobes-R-Us brands. It also installs specialty interior and exterior up-fit equipment for walk-in vans, truck bodies, cargo vans, and light duty pick-up trucks; and provides aftermarket support, including parts sales and field services, as well as parts and accessories. The Specialty Vehicles segment provides diesel motor home chassis; and truck bodies under the Royal Truck Body and DuraMag brands. The segment also provides final assembly services for Isuzu N-gas and F-series chassis under the Builtmore Contract Manufacturing brand; and designs and installs custom lighting and upfit solutions for a range of specialty industries. In addition, this segment provides truck accessories under the Magnum brand; and a range of parts and accessories, and maintenance and repair services for its motorhome and specialty chassis. It sells its products to commercial users, original equipment manufacturers, dealers, individuals, municipalities, and other government entities. The company was formerly known as Spartan Motors, Inc. and changed its name to The Shyft Group, Inc. in June 2020. The Shyft Group, Inc. was incorporated in 1975 and is headquartered in Novi, Michigan.
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.
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