Tenneco (NYSE: TEN) is one of 32 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it weigh in compared to its peers? We will compare Tenneco to related businesses based on the strength of its risk, valuation, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Risk & Volatility

Tenneco has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500. Comparatively, Tenneco’s peers have a beta of 1.37, indicating that their average share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Tenneco and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tenneco $8.86 billion $630.00 million 11.66
Tenneco Competitors $5.85 billion $698.04 million 14.95

Tenneco has higher revenue, but lower earnings than its peers. Tenneco 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.

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Tenneco pays out 19.7% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Tenneco is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Profitability

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

Net Margins Return on Equity Return on Assets
Tenneco 3.17% 54.06% 7.95%
Tenneco Competitors -95.27% 3.29% -1.03%

Insider and Institutional Ownership

94.3% of Tenneco shares are owned by institutional investors. Comparatively, 67.9% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 2.7% of Tenneco shares are owned by insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Tenneco and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 4 4 0 2.33
Tenneco Competitors 216 1031 1479 48 2.49

Tenneco currently has a consensus target price of $66.63, indicating a potential upside of 12.68%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential downside of 0.63%. Given Tenneco’s higher possible upside, equities analysts plainly believe Tenneco is more favorable than its peers.

Summary

Tenneco beats its peers on 9 of the 15 factors compared.

About Tenneco

Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.

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