Autoliv (NYSE: ALV) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a breakdown of current recommendations for Autoliv and Fox Factory Holding Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoliv 3 8 6 0 2.18
Fox Factory Holding Corp. 0 5 1 0 2.17

Autoliv presently has a consensus target price of $104.22, indicating a potential downside of 7.97%. Fox Factory Holding Corp. has a consensus target price of $34.00, indicating a potential downside of 16.56%. Given Autoliv’s stronger consensus rating and higher probable upside, analysts plainly believe Autoliv is more favorable than Fox Factory Holding Corp..

Volatility and Risk

Autoliv has a beta of 1.12, suggesting that its share price is 12% 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.

Earnings & Valuation

This table compares Autoliv and Fox Factory Holding Corp.’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Autoliv $10.22 billion 0.96 $1.28 billion $6.32 17.92
Fox Factory Holding Corp. $447.71 million 3.41 $74.45 million $1.24 32.86

Autoliv has higher revenue and earnings than Fox Factory Holding Corp.. Autoliv 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.

Insider and Institutional Ownership

34.8% of Autoliv shares are owned by institutional investors. Comparatively, 97.0% of Fox Factory Holding Corp. shares are owned by institutional investors. 0.3% of Autoliv shares are owned by company insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are owned 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Autoliv 5.44% 13.96% 6.75%
Fox Factory Holding Corp. 10.67% 29.60% 16.67%

Dividends

Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 2.1%. Fox Factory Holding Corp. does not pay a dividend. Autoliv pays out 38.0% of its earnings in the form of a dividend. Fox Factory Holding Corp. has increased its dividend for 7 consecutive years.

Summary

Fox Factory Holding Corp. beats Autoliv on 9 of the 17 factors compared between the two stocks.

About Autoliv

Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.

About Fox Factory Holding Corp.

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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