Tenneco (NYSE: TEN) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Tenneco has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Fox Factory Holding Corp. has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Tenneco and Fox Factory Holding Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 5 5 0 2.36
Fox Factory Holding Corp. 0 7 1 0 2.13

Tenneco presently has a consensus target price of $67.70, suggesting a potential upside of 19.38%. Fox Factory Holding Corp. has a consensus target price of $37.50, suggesting a potential upside of 0.40%. Given Tenneco’s stronger consensus rating and higher probable upside, equities analysts plainly believe Tenneco is more favorable than Fox Factory Holding Corp..

Valuation & Earnings

This table compares Tenneco and Fox Factory Holding Corp.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tenneco $8.60 billion 0.34 $363.00 million $3.22 17.61
Fox Factory Holding Corp. $403.08 million 3.48 $35.67 million $1.29 28.95

Tenneco has higher revenue and earnings than Fox Factory Holding Corp.. Tenneco is trading at a lower price-to-earnings ratio than Fox Factory Holding Corp., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Tenneco and Fox Factory Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenneco 1.97% 54.13% 7.77%
Fox Factory Holding Corp. 10.76% 28.25% 16.44%

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Fox Factory Holding Corp. does not pay a dividend. Tenneco pays out 31.1% of its earnings in the form of a dividend.

Insider & Institutional Ownership

93.5% of Tenneco shares are held by institutional investors. Comparatively, 97.5% of Fox Factory Holding Corp. shares are held by institutional investors. 2.7% of Tenneco shares are held by company insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Tenneco beats Fox Factory Holding Corp. on 9 of the 16 factors compared between the two stocks.

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.

Fox Factory Holding Corp. Company Profile

Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.

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