Analyzing Commercial Vehicle Group (NASDAQ:CVGI) & Miller Industries (NYSE:MLR)

Miller Industries (NYSE:MLR) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

Miller Industries has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 2.02, meaning that its share price is 102% more volatile than the S&P 500.

Institutional & Insider Ownership

79.2% of Miller Industries shares are owned by institutional investors. Comparatively, 72.3% of Commercial Vehicle Group shares are owned by institutional investors. 4.4% of Miller Industries shares are owned by insiders. Comparatively, 4.2% of Commercial Vehicle Group shares are owned by 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.

Profitability

This table compares Miller Industries and Commercial Vehicle Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Miller Industries	4.35%	10.48%	6.33%
Commercial Vehicle Group	-5.66%	-7.40%	-2.48%

Valuation & Earnings

This table compares Miller Industries and Commercial Vehicle Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$1.26 billion	0.37	$63.49 million	$3.66	11.14
Commercial Vehicle Group	$723.35 million	0.08	-$27.87 million	($1.13)	-1.41

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

Analyst Ratings

This is a summary of recent ratings and target prices for Miller Industries and Commercial Vehicle Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
Commercial Vehicle Group	1	1	0	0	1.50

Miller Industries presently has a consensus price target of $64.00, indicating a potential upside of 56.98%. Given Miller Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Miller Industries is more favorable than Commercial Vehicle Group.

Summary

Miller Industries beats Commercial Vehicle Group on 13 of the 14 factors compared between the two stocks.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.

About Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.