Critical Review: Tenneco (TEN) & Its Competitors
Tenneco (NYSE: TEN) is one of 32 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it compare to its competitors? We will compare Tenneco to related companies based on the strength of its institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.
Insider & Institutional Ownership
94.3% of Tenneco shares are held by institutional investors. Comparatively, 71.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 2.7% of Tenneco shares are held by company insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Tenneco and its competitors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tenneco currently has a consensus price target of $66.63, indicating a potential upside of 16.03%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 0.62%. Given Tenneco’s higher possible upside, equities analysts plainly believe Tenneco is more favorable than its competitors.
Risk and Volatility
Tenneco has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Tenneco’s competitors have a beta of 1.37, indicating that their average stock price is 37% more volatile than the S&P 500.
Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.7%. Tenneco pays out 19.7% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.5% and pay out 21.6% of their earnings in the form of a dividend. Tenneco is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares Tenneco and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Tenneco and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Tenneco||$8.86 billion||$630.00 million||11.33|
|Tenneco Competitors||$5.85 billion||$698.04 million||14.57|
Tenneco has higher revenue, but lower earnings than its competitors. Tenneco is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Tenneco beats its competitors on 9 of the 15 factors compared.
Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.
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