Reviewing PHINIA (NYSE:PHIN) and Camping World (NYSE:CWH)

Camping World (NYSE:CWH) and PHINIA (NYSE:PHIN) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and target prices for Camping World and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camping World	1	3	8	0	2.58
PHINIA	0	4	4	3	2.91

Camping World currently has a consensus price target of $17.67, indicating a potential upside of 81.98%. PHINIA has a consensus price target of $59.00, indicating a potential downside of 8.65%. Given Camping World’s higher possible upside, equities analysts plainly believe Camping World is more favorable than PHINIA.

Profitability

This table compares Camping World and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camping World	-0.85%	3.80%	0.37%
PHINIA	2.63%	11.64%	4.78%

Dividends

Camping World pays an annual dividend of $0.50 per share and has a dividend yield of 5.2%. PHINIA pays an annual dividend of $1.08 per share and has a dividend yield of 1.7%. Camping World pays out -53.8% of its earnings in the form of a dividend. PHINIA pays out 48.6% 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. Camping World has increased its dividend for 1 consecutive years and PHINIA has increased its dividend for 2 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk and Volatility

Camping World has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500.

Earnings and Valuation

This table compares Camping World and PHINIA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camping World	$6.10 billion	0.16	-$38.64 million	($0.93)	-10.44
PHINIA	$3.40 billion	0.73	$79.00 million	$2.22	29.09

PHINIA has lower revenue, but higher earnings than Camping World. Camping World is trading at a lower price-to-earnings ratio than PHINIA, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

52.5% of Camping World shares are held by institutional investors. Comparatively, 90.9% of PHINIA shares are held by institutional investors. 35.6% of Camping World shares are held by company insiders. Comparatively, 2.0% of PHINIA shares are held by company 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.

Summary

PHINIA beats Camping World on 11 of the 18 factors compared between the two stocks.

About Camping World

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.