Contrasting Visteon (NASDAQ:VC) & XPEL (NASDAQ:XPEL)

XPEL (NASDAQ:XPEL) and Visteon (NASDAQ:VC) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, valuation and dividends.

Risk and Volatility

XPEL has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Visteon has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Earnings & Valuation

This table compares XPEL and Visteon”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$476.20 million	2.34	$51.23 million	$1.85	21.85
Visteon	$3.77 billion	0.63	$201.00 million	$9.43	9.31

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

Insider and Institutional Ownership

75.1% of XPEL shares are owned by institutional investors. Comparatively, 99.7% of Visteon shares are owned by institutional investors. 9.5% of XPEL shares are owned by company insiders. Comparatively, 2.0% of Visteon shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPEL	10.76%	19.51%	14.81%
Visteon	6.93%	17.94%	8.54%

Analyst Ratings

This is a summary of current recommendations for XPEL and Visteon, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	1	1	0	0	1.50
Visteon	0	6	8	0	2.57

Visteon has a consensus target price of $122.33, indicating a potential upside of 39.28%. Given Visteon’s stronger consensus rating and higher possible upside, analysts clearly believe Visteon is more favorable than XPEL.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

About Visteon

Visteon Corporation, an automotive technology company, designs, manufactures, and sells automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters for 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as active privacy, TrueColor enhancement, local dimming, cameras, optics, haptic feedback, and light effects; and infotainment and connected car solutions, including scalable Android infotainment for seamless connectivity, as well as onboard artificial intelligence-based voice assistants with natural language understanding. It offers wired and wireless battery management systems; power electronics units; and telematics control units to enable secure connected car services, software updates, and data. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; SmartCore Runtime, a middleware enabling communication between domains and apps to be shown on any display; SmartCore Studio, a PC-based configuration tool to generate hypervisor configurations; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions, into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.