Allison Transmission (NYSE: ALSN) and LCI Industries (NYSE:LCII) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, profitability, valuation, dividends and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Allison Transmission and LCI Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allison Transmission 3 4 6 0 2.23
LCI Industries 0 1 2 0 2.67

Allison Transmission currently has a consensus target price of $44.55, indicating a potential upside of 6.29%. LCI Industries has a consensus target price of $113.67, indicating a potential upside of 16.52%. Given LCI Industries’ stronger consensus rating and higher probable upside, analysts plainly believe LCI Industries is more favorable than Allison Transmission.

Insider & Institutional Ownership

94.3% of LCI Industries shares are owned by institutional investors. 8.4% of Allison Transmission shares are owned by insiders. Comparatively, 4.0% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility & Risk

Allison Transmission has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Profitability

This table compares Allison Transmission and LCI Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allison Transmission 23.58% 71.50% 11.22%
LCI Industries 5.96% 23.14% 15.01%

Earnings and Valuation

This table compares Allison Transmission and LCI Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allison Transmission $2.26 billion 2.55 $504.00 million $2.66 15.76
LCI Industries $2.15 billion 1.15 $132.88 million $5.76 16.94

Allison Transmission has higher revenue and earnings than LCI Industries. Allison Transmission is trading at a lower price-to-earnings ratio than LCI Industries, indicating that it is currently the more affordable of the two stocks.

Dividends

Allison Transmission pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. LCI Industries pays an annual dividend of $2.40 per share and has a dividend yield of 2.5%. Allison Transmission pays out 22.6% of its earnings in the form of a dividend. LCI Industries pays out 41.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Summary

Allison Transmission beats LCI Industries on 9 of the 16 factors compared between the two stocks.

About Allison Transmission

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 13 transmission product lines with approximately 100 product models for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under Allison Transmission brand name; and remanufactured transmissions under ReTran brand name. It also sells branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

About LCI Industries

LCI Industries, along with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures or distributes various components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; televisions and sound systems; navigation systems; backup cameras; and other accessories. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. It also sells replacement glass and awnings to fulfill insurance claims. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1962 and is based in Elkhart, Indiana.

Receive News & Ratings for Allison Transmission Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Allison Transmission and related companies with MarketBeat.com's FREE daily email newsletter.