Critical Survey: Horizon Global Corporation (HZN) vs. Metaldyne Performance Group (MPG)
Horizon Global Corporation (NYSE: HZN) and Metaldyne Performance Group (NYSE:MPG) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, profitabiliy, valuation and risk.
Insider & Institutional Ownership
88.6% of Horizon Global Corporation shares are held by institutional investors. Comparatively, 18.6% of Metaldyne Performance Group shares are held by institutional investors. 1.3% of Horizon Global Corporation shares are held by insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Horizon Global Corporation and Metaldyne Performance Group’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Horizon Global Corporation||$706.37 million||0.66||$45.38 million||($0.67)||-27.28|
|Metaldyne Performance Group||N/A||N/A||N/A||$1.44||15.21|
Horizon Global Corporation has higher revenue and earnings than Metaldyne Performance Group. Horizon Global Corporation is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Horizon Global Corporation has a beta of 1.93, indicating that its stock price is 93% more volatile than the S&P 500. Comparatively, Metaldyne Performance Group has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500.
Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Horizon Global Corporation does not pay a dividend. Metaldyne Performance Group pays out 25.7% of its earnings in the form of a dividend.
This is a breakdown of recent recommendations and price targets for Horizon Global Corporation and Metaldyne Performance Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Global Corporation||0||3||4||0||2.57|
|Metaldyne Performance Group||0||3||0||0||2.00|
Horizon Global Corporation currently has a consensus price target of $20.17, suggesting a potential upside of 10.32%. Metaldyne Performance Group has a consensus price target of $18.67, suggesting a potential downside of 14.76%. Given Horizon Global Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Horizon Global Corporation is more favorable than Metaldyne Performance Group.
This table compares Horizon Global Corporation and Metaldyne Performance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Global Corporation||-1.45%||25.97%||2.94%|
|Metaldyne Performance Group||2.60%||9.80%||2.11%|
Horizon Global Corporation beats Metaldyne Performance Group on 8 of the 13 factors compared between the two stocks.
About Horizon Global Corporation
Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.
About Metaldyne Performance Group
Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.
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