Analyzing Horizon Global Corporation (HZN) & Cooper-Standard Holdings (CPS)
Horizon Global Corporation (NYSE: HZN) and Cooper-Standard Holdings (NYSE:CPS) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, earnings, valuation and dividends.
Risk and Volatility
Horizon Global Corporation has a beta of 1.93, suggesting that its stock price is 93% more volatile than the S&P 500. Comparatively, Cooper-Standard Holdings has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for Horizon Global Corporation and Cooper-Standard Holdings, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Horizon Global Corporation||0||3||4||0||2.57|
Horizon Global Corporation presently has a consensus target price of $20.17, suggesting a potential upside of 19.68%. Cooper-Standard Holdings has a consensus target price of $108.40, suggesting a potential upside of 8.05%. Given Horizon Global Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Horizon Global Corporation is more favorable than Cooper-Standard Holdings.
Valuation & Earnings
This table compares Horizon Global Corporation and Cooper-Standard Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Horizon Global Corporation||$792.20 million||0.53||$58.76 million||($0.67)||-25.15|
|Cooper-Standard Holdings||$3.54 billion||0.50||$431.14 million||$7.93||12.65|
Cooper-Standard Holdings has higher revenue and earnings than Horizon Global Corporation. Horizon Global Corporation is trading at a lower price-to-earnings ratio than Cooper-Standard Holdings, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.7% of Horizon Global Corporation shares are owned by institutional investors. Comparatively, 95.3% of Cooper-Standard Holdings shares are owned by institutional investors. 1.3% of Horizon Global Corporation shares are owned by insiders. Comparatively, 3.9% of Cooper-Standard Holdings shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This table compares Horizon Global Corporation and Cooper-Standard Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Horizon Global Corporation||-1.45%||18.86%||2.76%|
Cooper-Standard Holdings beats Horizon Global Corporation on 8 of the 14 factors compared between the two stocks.
Horizon Global Corporation Company Profile
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.
Cooper-Standard Holdings Company Profile
Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.
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