Financial Analysis: Motorcar Parts of America (MPAA) vs. Tenneco (TEN)
Motorcar Parts of America (NASDAQ: MPAA) and Tenneco (NYSE:TEN) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.
Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Motorcar Parts of America does not pay a dividend. Tenneco pays out 19.7% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Motorcar Parts of America and Tenneco’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Motorcar Parts of America||$430.90 million||1.21||$77.71 million||$1.93||14.51|
|Tenneco||$8.86 billion||0.36||$630.00 million||$5.07||11.66|
Tenneco has higher revenue and earnings than Motorcar Parts of America. Tenneco is trading at a lower price-to-earnings ratio than Motorcar Parts of America, indicating that it is currently the more affordable of the two stocks.
This table compares Motorcar Parts of America and Tenneco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||8.75%||16.77%||9.31%|
This is a breakdown of recent ratings and price targets for Motorcar Parts of America and Tenneco, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
Motorcar Parts of America presently has a consensus price target of $36.67, suggesting a potential upside of 30.91%. Tenneco has a consensus price target of $66.63, suggesting a potential upside of 12.68%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, research analysts plainly believe Motorcar Parts of America is more favorable than Tenneco.
Risk & Volatility
Motorcar Parts of America has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Tenneco has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500.
Insider and Institutional Ownership
94.3% of Tenneco shares are held by institutional investors. 4.4% of Motorcar Parts of America shares are held by insiders. Comparatively, 2.7% of Tenneco shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Motorcar Parts of America Company Profile
Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.
Tenneco Company Profile
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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