Visteon Corporation (NYSE: VC) and Stoneridge (NYSE:SRI) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, analyst recommendations, profitability, institutional ownership and valuation.

Profitability

This table compares Visteon Corporation and Stoneridge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon Corporation 4.35% 27.56% 8.67%
Stoneridge 10.12% 22.52% 9.17%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Visteon Corporation and Stoneridge, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon Corporation 0 5 7 0 2.58
Stoneridge 0 1 1 0 2.50

Visteon Corporation presently has a consensus target price of $113.73, indicating a potential downside of 8.50%. Stoneridge has a consensus target price of $19.50, indicating a potential downside of 10.06%. Given Visteon Corporation’s stronger consensus rating and higher possible upside, research analysts clearly believe Visteon Corporation is more favorable than Stoneridge.

Volatility & Risk

Visteon Corporation has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Visteon Corporation and Stoneridge’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Visteon Corporation $3.17 billion 1.22 $335.00 million $4.19 29.66
Stoneridge $759.88 million 0.80 $85.94 million $2.70 8.03

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

Institutional and Insider Ownership

87.8% of Stoneridge shares are held by institutional investors. 0.2% of Visteon Corporation shares are held by insiders. Comparatively, 5.3% of Stoneridge shares are held by 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.

Summary

Visteon Corporation beats Stoneridge on 9 of the 14 factors compared between the two stocks.

About Visteon Corporation

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

About Stoneridge

Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.

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