Contrasting Tower International (NYSE:TOWR) & Its Competitors

Tower International (NYSE: TOWR) is one of 45 publicly-traded companies in the “Motor vehicle parts & accessories” industry, but how does it weigh in compared to its peers? We will compare Tower International to similar companies based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Insider and Institutional Ownership

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90.3% of Tower International shares are owned by institutional investors. Comparatively, 73.4% of shares of all “Motor vehicle parts & accessories” companies are owned by institutional investors. 6.2% of Tower International shares are owned by company insiders. Comparatively, 13.8% of shares of all “Motor vehicle parts & accessories” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.



Dividends

Tower International pays an annual dividend of $0.48 per share and has a dividend yield of 1.6%. Tower International pays out 12.8% of its earnings in the form of a dividend. As a group, “Motor vehicle parts & accessories” companies pay a dividend yield of 1.7% and pay out 21.3% of their earnings in the form of a dividend. Tower International has increased its dividend for 2 consecutive years.

Risk and Volatility

Tower International has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500. Comparatively, Tower International’s peers have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Profitability

This table compares Tower International and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tower International 2.40% 30.05% 6.20%
Tower International Competitors 2.20% 22.50% 5.66%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Tower International and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tower International 0 1 2 0 2.67
Tower International Competitors 254 1261 1831 82 2.51

Tower International presently has a consensus target price of $35.50, suggesting a potential upside of 19.53%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 9.58%. Given Tower International’s stronger consensus rating and higher possible upside, equities analysts plainly believe Tower International is more favorable than its peers.

Valuation and Earnings

This table compares Tower International and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Tower International $1.99 billion $47.62 million 7.90
Tower International Competitors $7.96 billion $494.31 million 13.21

Tower International’s peers have higher revenue and earnings than Tower International. Tower International is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Tower International beats its peers on 9 of the 15 factors compared.

About Tower International

Tower International, Inc. manufactures and sells engineered automotive structural metal components and assemblies primarily for original equipment manufacturers. It operates in two segments, North America and Europe. The company provides body structures and assemblies, including structural metal components, which comprise body pillars, roof rails, and side sills; and Class A surfaces and assemblies that consist of body sides, hoods, doors, fenders, and pickup truck boxes. It also offers lower vehicle frames and structures, such as pickup truck and sport utility vehicle (SUV) full frames, automotive engine and rear suspension cradles, floor pan components, and cross members. In addition, the company offers complex body-in-white assemblies comprising various components and sub-assemblies. Its products have applications in small and large cars, crossovers, pickups, and SUVs. The company was formerly known as Tower Automotive, LLC and changed its name to Tower International, Inc. in October 2010. Tower International, Inc. was founded in 1993 and is headquartered in Livonia, Michigan.

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