Horizon Global Corporation (NYSE: HZN) and Harman International Industries (NYSE:HAR) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations and earnings.

Institutional & Insider Ownership

94.0% of Horizon Global Corporation shares are owned by institutional investors. Comparatively, 85.8% of Harman International Industries shares are owned by institutional investors. 1.3% of Horizon Global Corporation shares are owned by insiders. Comparatively, 0.9% of Harman International Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Horizon Global Corporation does not pay a dividend. Harman International Industries pays out 27.6% of its earnings in the form of a dividend. Horizon Global Corporation has raised its dividend for 6 consecutive years.

Profitability

This table compares Horizon Global Corporation and Harman International Industries’ 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%
Harman International Industries 5.12% 15.69% 6.40%

Valuation and Earnings

This table compares Horizon Global Corporation and Harman International Industries’ 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) -25.06
Harman International Industries N/A N/A N/A $5.07 21.99

Horizon Global Corporation has higher revenue and earnings than Harman International Industries. Horizon Global Corporation is trading at a lower price-to-earnings ratio than Harman International Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Horizon Global Corporation and Harman International Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Horizon Global Corporation 1 2 4 0 2.43
Harman International Industries 0 6 0 0 2.00

Horizon Global Corporation presently has a consensus target price of $20.17, indicating a potential upside of 20.11%. Harman International Industries has a consensus target price of $107.25, indicating a potential downside of 3.81%. Given Horizon Global Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Horizon Global Corporation is more favorable than Harman International Industries.

Volatility and Risk

Horizon Global Corporation has a beta of 1.87, suggesting that its stock price is 87% more volatile than the S&P 500. Comparatively, Harman International Industries has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Summary

Horizon Global Corporation beats Harman International Industries on 10 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.

Harman International Industries Company Profile

Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.

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