Head to Head Analysis: Superior Industries International (SUP) and Meritor (MTOR)

Meritor (NYSE: MTOR) and Superior Industries International (NYSE:SUP) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, analyst recommendations, earnings, dividends, risk, institutional ownership and valuation.

Institutional & Insider Ownership

96.2% of Meritor shares are owned by institutional investors. Comparatively, 84.2% of Superior Industries International shares are owned by institutional investors. 2.9% of Meritor shares are owned by insiders. Comparatively, 1.5% of Superior Industries International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Meritor has a beta of 2.28, indicating that its stock price is 128% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Meritor and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meritor 9.68% -1,152.54% 6.52%
Superior Industries International 0.66% 7.96% 3.32%

Earnings & Valuation

This table compares Meritor and Superior Industries International’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meritor $3.35 billion 0.65 $324.00 million $3.55 6.87
Superior Industries International $732.70 million 0.55 $41.38 million ($0.20) -80.25

Meritor has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Meritor, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Meritor and Superior Industries International, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meritor 0 4 4 0 2.50
Superior Industries International 0 1 2 0 2.67

Meritor presently has a consensus price target of $26.44, indicating a potential upside of 8.35%. Superior Industries International has a consensus price target of $22.67, indicating a potential upside of 41.23%. Given Superior Industries International’s stronger consensus rating and higher probable upside, analysts clearly believe Superior Industries International is more favorable than Meritor.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Meritor does not pay a dividend. Superior Industries International pays out -180.0% of its earnings in the form of a dividend.

Summary

Meritor beats Superior Industries International on 10 of the 16 factors compared between the two stocks.

About Meritor

Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.

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.

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

Latest News

Leave a Reply