By otakuyassine3@gmail.com 
Federal Signal (NYSE:FSS – Get Free Report) and Mercedes-Benz Group (OTCMKTS:MBGYY – Get Free Report) are both multi-sector conglomerates companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.
Profitability
This table compares Federal Signal and Mercedes-Benz Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Federal Signal | 11.57% | 18.46% | 11.84% |
| Mercedes-Benz Group | 7.36% | 11.66% | 4.11% |
Analyst Recommendations
This is a summary of current ratings and recommmendations for Federal Signal and Mercedes-Benz Group, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Federal Signal | 0 | 1 | 1 | 0 | 2.50 |
| Mercedes-Benz Group | 1 | 2 | 0 | 0 | 1.67 |
Federal Signal presently has a consensus price target of $90.00, suggesting a potential downside of 6.03%. Given Federal Signal’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Federal Signal is more favorable than Mercedes-Benz Group.
Valuation & Earnings
This table compares Federal Signal and Mercedes-Benz Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Federal Signal | $1.84 billion | 3.18 | $157.40 million | $3.45 | 27.76 |
| Mercedes-Benz Group | $165.81 billion | 0.37 | $15.43 billion | C$2.88 | 4.92 |
Mercedes-Benz Group has higher revenue and earnings than Federal Signal. Mercedes-Benz Group is trading at a lower price-to-earnings ratio than Federal Signal, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.7% of Federal Signal shares are owned by institutional investors. 3.1% of Federal Signal shares are owned by insiders. 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.
Risk & Volatility
Federal Signal has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Mercedes-Benz Group has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.
Summary
Federal Signal beats Mercedes-Benz Group on 11 of the 14 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 Mercedes-Benz Group
Mercedes-Benz Group AG operates as an automotive company in Germany and internationally. It operates through Mercedes-Benz Cars, Mercedes-Benz Vans, and Mercedes-Benz Mobility segments. The company develops, manufactures, and sells cars and vans under the Mercedes-Benz, Mercedes-AMG, Mercedes-Maybach, G-Class brands, as well as related spare parts and accessories. It also provides financing, leasing, car subscription and rental, fleet management, insurance brokerage, and mobility services, as well as digital services for charging and payment. The company was formerly known as Daimler AG and changed its name to Mercedes-Benz Group AG in February 2022. Mercedes-Benz Group AG was founded in 1886 and is headquartered in Stuttgart, Germany.
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