Autoliv (ALV) & Fenix Parts (FENX) Critical Contrast
Autoliv (NYSE: ALV) and Fenix Parts (NASDAQ:FENX) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, profitabiliy, analyst recommendations, earnings and valuation.
Valuation and Earnings
This table compares Autoliv and Fenix Parts’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Autoliv||$10.22 billion||0.93||$1.28 billion||$6.32||17.24|
|Fenix Parts||$129.13 million||0.11||-$4.60 million||($2.89)||-0.25|
Autoliv has higher revenue and earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.
Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 2.2%. Fenix Parts does not pay a dividend. Autoliv pays out 38.0% of its earnings in the form of a dividend. Fenix Parts has increased its dividend for 7 consecutive years.
This table compares Autoliv and Fenix Parts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Autoliv has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Fenix Parts has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
This is a summary of recent ratings for Autoliv and Fenix Parts, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Autoliv currently has a consensus price target of $104.09, indicating a potential downside of 4.48%. Given Autoliv’s stronger consensus rating and higher possible upside, research analysts plainly believe Autoliv is more favorable than Fenix Parts.
Institutional and Insider Ownership
33.0% of Autoliv shares are owned by institutional investors. Comparatively, 52.3% of Fenix Parts shares are owned by institutional investors. 0.3% of Autoliv shares are owned by insiders. Comparatively, 16.6% of Fenix Parts shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Autoliv beats Fenix Parts on 12 of the 16 factors compared between the two stocks.
Autoliv Company Profile
Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.
Fenix Parts Company Profile
Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.
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