Tenneco (NYSE: TEN) and Superior Industries International (NYSE:SUP) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Insider and Institutional Ownership
94.2% of Tenneco shares are owned by institutional investors. Comparatively, 82.2% of Superior Industries International shares are owned by institutional investors. 2.7% of Tenneco shares are owned by company insiders. Comparatively, 1.5% of Superior Industries International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility & Risk
Tenneco has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.
This table compares Tenneco and Superior Industries International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||1.23%||9.54%||5.01%|
Valuation & Earnings
This table compares Tenneco and Superior Industries International’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tenneco||$8.86 billion||0.38||$630.00 million||$5.07||12.63|
|Superior Industries International||$778.75 million||0.54||$76.24 million||$0.25||67.60|
Tenneco has higher revenue and earnings than Superior Industries International. Tenneco is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Tenneco and Superior Industries International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
Tenneco currently has a consensus target price of $66.63, suggesting a potential upside of 4.09%. Superior Industries International has a consensus target price of $24.67, suggesting a potential upside of 45.96%. Given Superior Industries International’s stronger consensus rating and higher possible upside, analysts clearly believe Superior Industries International is more favorable than Tenneco.
Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Tenneco pays out 19.7% of its earnings in the form of a dividend. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Tenneco beats Superior Industries International on 11 of the 16 factors compared between the two stocks.
Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.
About Superior Industries International
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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