Metaldyne Performance Group (NYSE: MPG) and Fenix Parts (OTCMKTS:FENX) are both small-cap cyclical consumer goods & services companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Dividends

Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Fenix Parts does not pay a dividend. Metaldyne Performance Group pays out 26.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

18.6% of Metaldyne Performance Group shares are held by institutional investors. Comparatively, 4.1% of Fenix Parts shares are held by institutional investors. 5.1% of Metaldyne Performance Group shares are held by insiders. Comparatively, 16.6% of Fenix Parts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Metaldyne Performance Group and Fenix Parts’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Metaldyne Performance Group N/A N/A N/A $1.39 15.76
Fenix Parts $132.10 million 0.04 -$42.86 million ($2.03) -0.12

Metaldyne Performance Group has higher earnings, but lower revenue than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Metaldyne Performance Group and Fenix Parts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Metaldyne Performance Group 2.60% 9.80% 2.11%
Fenix Parts -30.56% -66.11% -34.71%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Metaldyne Performance Group and Fenix Parts, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Metaldyne Performance Group 0 1 0 0 2.00
Fenix Parts 0 0 0 0 N/A

Metaldyne Performance Group presently has a consensus price target of $21.00, suggesting a potential downside of 4.11%. Given Metaldyne Performance Group’s higher probable upside, equities analysts clearly believe Metaldyne Performance Group is more favorable than Fenix Parts.

Summary

Metaldyne Performance Group beats Fenix Parts on 7 of the 10 factors compared between the two stocks.

Metaldyne Performance Group Company Profile

Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.

Fenix Parts Company Profile

Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.

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