Reviewing Continental (CTTAY) and The Competition

Continental (OTCMKTS:CTTAY) is one of 148 public companies in the “Automobile Components” industry, but how does it contrast to its rivals? We will compare Continental to related businesses based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, risk, dividends and profitability.

Profitability

This table compares Continental and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Continental	5.35%	18.14%	4.51%
Continental Competitors	-40.98%	-0.27%	-1.94%

Insider & Institutional Ownership

0.0% of Continental shares are owned by institutional investors. Comparatively, 48.4% of shares of all “Automobile Components” companies are owned by institutional investors. 19.6% of shares of all “Automobile Components” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for Continental and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental	0	4	5	0	2.56
Continental Competitors	1092	4508	6144	203	2.46

As a group, “Automobile Components” companies have a potential upside of 61.23%. Given Continental’s rivals higher probable upside, analysts clearly believe Continental has less favorable growth aspects than its rivals.

Dividends

Continental pays an annual dividend of $0.21 per share and has a dividend yield of 2.6%. Continental pays out 48.8% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.7% and pay out 24.4% of their earnings in the form of a dividend. Continental lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Continental	$22.26 billion	-$186.68 million	18.96
Continental Competitors	$7.68 billion	$73.97 million	3.17

Continental has higher revenue, but lower earnings than its rivals. Continental is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Continental has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500. Comparatively, Continental’s rivals have a beta of 3.84, meaning that their average stock price is 284% more volatile than the S&P 500.

Summary

Continental rivals beat Continental on 8 of the 15 factors compared.

About Continental

Continental AG is a German manufacturing company founded in 1871 and headquartered in Hanover. It develops and produces tires and technology products for mobility and industrial applications, serving vehicle manufacturers, businesses and consumers around the world. Its tire business supplies products for passenger cars, commercial vehicles and specialty applications, including tires sold under the Continental and General Tire brands. Through ContiTech, the company also makes materials and components such as hoses, conveyor belts and air springs for transportation and industrial customers.