Dorman Products (NASDAQ:DORM) and Fuel Systems Solutions (FSYS) Head to Head Review

Dorman Products (NASDAQ: DORM) and Fuel Systems Solutions (NASDAQ:FSYS) are both cyclical consumer goods & services companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Profitability

This table compares Dorman Products and Fuel Systems Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorman Products 12.53% 18.32% 15.45%
Fuel Systems Solutions -11.53% -16.93% -11.31%

Institutional & Insider Ownership

76.3% of Dorman Products shares are owned by institutional investors. 11.7% of Dorman Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Dorman Products and Fuel Systems Solutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorman Products $859.60 million 2.60 $106.04 million $3.31 20.05
Fuel Systems Solutions N/A N/A N/A ($2.30) -2.35

Dorman Products has higher revenue and earnings than Fuel Systems Solutions. Fuel Systems Solutions is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Dorman Products has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500. Comparatively, Fuel Systems Solutions has a beta of 1.98, suggesting that its share price is 98% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Dorman Products and Fuel Systems Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorman Products 0 4 0 0 2.00
Fuel Systems Solutions 0 0 0 0 N/A

Dorman Products presently has a consensus price target of $68.33, indicating a potential upside of 2.97%. Given Dorman Products’ higher possible upside, research analysts clearly believe Dorman Products is more favorable than Fuel Systems Solutions.

Summary

Dorman Products beats Fuel Systems Solutions on 8 of the 9 factors compared between the two stocks.

Dorman Products Company Profile

Dorman Products, Inc. is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. As of December 31, 2016, the Company distributed and marketed approximately 155,000 different stock keeping units (SKU’s) of automotive replacement parts and fasteners. As of December 31, 2016, approximately 83% of its products were sold under brands that it owned and the remainder of its products were sold for resale under customers’ private labels, other brands or in bulk. Its products are sold in the United States through automotive aftermarket retailers, national, regional and local warehouse distributors, and specialty markets, and salvage yards. It also distributes automotive replacement parts outside the United States, with sales primarily into Canada, Mexico, Europe, the Middle East, and Australia. Its parts are marketed under the OE Solutions, TECHoice, AutoGrade, Conduct-Tite, FirstStop and HD Solutions brand names.

Fuel Systems Solutions Company Profile

Fuel Systems Solutions, Inc. is engaged in providing alternative fuel systems for transportation, industrial and refueling applications across the world, as well as reduction technologies for the heavy duty truck and rail markets. The Company operates through two segments: FSS Industrial and FSS Automotive. The FSS Industrial segment consists of its industrial mobile and stationary, auxiliary power units (APU) and the heavy duty commercial transportation operations. The FSS Automotive segment consists of the Company’s passenger and light duty commercial transportation, automotive aftermarket and transportation infrastructure operations. Its products include gaseous fuel regulators, fuel shut-off valves, fuel metering and delivery systems, complete engine systems, auxiliary power systems and electronic controls for use in internal combustion engines. In addition to these core products, which it manufactures, the Company also designs, assembles and markets ancillary components.

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