Financial Contrast: Superior Industries International (SUP) versus Tenneco (TEN)
Superior Industries International (NYSE: SUP) and Tenneco (NYSE:TEN) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, risk, profitability, earnings, institutional ownership and dividends.
Earnings & Valuation
This table compares Superior Industries International and Tenneco’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$732.70 million||0.50||$41.38 million||($0.20)||-74.25|
|Tenneco||$8.60 billion||0.33||$363.00 million||$3.31||16.83|
Tenneco has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Tenneco, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Superior Industries International has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Tenneco has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Superior Industries International and Tenneco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
Superior Industries International currently has a consensus target price of $22.67, suggesting a potential upside of 52.64%. Tenneco has a consensus target price of $67.70, suggesting a potential upside of 21.50%. Given Superior Industries International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Superior Industries International is more favorable than Tenneco.
This table compares Superior Industries International and Tenneco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||0.66%||8.63%||3.32%|
Institutional and Insider Ownership
81.5% of Superior Industries International shares are held by institutional investors. Comparatively, 97.8% of Tenneco shares are held by institutional investors. 1.5% of Superior Industries International shares are held by company insiders. Comparatively, 2.7% of Tenneco shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.4%. Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Superior Industries International pays out -180.0% of its earnings in the form of a dividend. Tenneco pays out 30.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Superior Industries International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Tenneco beats Superior Industries International on 10 of the 16 factors compared between the two stocks.
About Superior Industries International
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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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