Financial Analysis: Superior Industries International (SUP) vs. Horizon Global (HZN)
Superior Industries International (NYSE: SUP) and Horizon Global (NYSE:HZN) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, risk, analyst recommendations and institutional ownership.
Insider and Institutional Ownership
84.1% of Superior Industries International shares are owned by institutional investors. Comparatively, 90.8% of Horizon Global shares are owned by institutional investors. 1.5% of Superior Industries International shares are owned by insiders. Comparatively, 1.3% of Horizon Global shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Superior Industries International and Horizon Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
Superior Industries International currently has a consensus price target of $22.67, indicating a potential upside of 34.92%. Horizon Global has a consensus price target of $19.60, indicating a potential upside of 36.59%. Given Horizon Global’s higher possible upside, analysts plainly believe Horizon Global is more favorable than Superior Industries International.
Valuation & Earnings
This table compares Superior Industries International and Horizon Global’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$732.70 million||0.57||$41.38 million||($0.20)||-84.00|
|Horizon Global||$649.20 million||0.55||-$12.36 million||($0.43)||-33.37|
Superior Industries International has higher revenue and earnings than Horizon Global. Superior Industries International is trading at a lower price-to-earnings ratio than Horizon Global, indicating that it is currently the more affordable of the two stocks.
This table compares Superior Industries International and Horizon Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||0.66%||7.96%||3.32%|
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Horizon Global does not pay a dividend. Superior Industries International pays out -180.0% of its earnings in the form of a dividend.
Superior Industries International beats Horizon Global on 8 of the 15 factors compared between the two stocks.
Superior Industries International Company Profile
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
Horizon Global 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.
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