Autoweb (NASDAQ: AUTO) and Allison Transmission (NYSE:ALSN) 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, valuation, profitability, risk, dividends, earnings and institutional ownership.
Risk & Volatility
Autoweb has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.
This table compares Autoweb and Allison Transmission’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Allison Transmission pays an annual dividend of $0.60 per share and has a dividend yield of 1.5%. Autoweb does not pay a dividend. Allison Transmission pays out 17.6% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Autoweb and Allison Transmission, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Autoweb presently has a consensus target price of $4.90, indicating a potential upside of 38.42%. Allison Transmission has a consensus target price of $43.70, indicating a potential upside of 12.02%. Given Autoweb’s higher possible upside, analysts plainly believe Autoweb is more favorable than Allison Transmission.
Valuation & Earnings
This table compares Autoweb and Allison Transmission’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Autoweb||$142.13 million||0.33||-$64.96 million||($5.15)||-0.69|
|Allison Transmission||$2.26 billion||2.42||$504.00 million||$3.41||11.44|
Allison Transmission has higher revenue and earnings than Autoweb. Autoweb is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
50.3% of Autoweb shares are held by institutional investors. 20.7% of Autoweb shares are held by company insiders. Comparatively, 7.9% of Allison Transmission shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Allison Transmission beats Autoweb on 12 of the 16 factors compared between the two stocks.
Autoweb Company Profile
AutoWeb, Inc., formerly Autobytel Inc., is an automotive marketing services company that assists automotive retail dealers and automotive manufacturers market and sell new and used vehicles to consumers through the programs for online lead referrals, dealer marketing products and services, and online advertising programs and mobile products. The Company operates through providing automotive marketing services segment. Its consumer-facing automotive Websites, including Website Autobytel.com, provide consumers with information and tools to aid them with the automotive purchase decisions and ability to submit inquiries requesting dealers to contact the consumers regarding purchasing or leasing vehicles. Its AutoWeb pay-per-click advertising marketplace program uses technology to refer consumer traffic to dealers and manufacturer Websites.
Allison Transmission Company Profile
Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company’s transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company’s transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.
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