Head to Head Analysis: Mobileye Global (NASDAQ:MBLY) & Continental (OTCMKTS:CTTAY)

Mobileye Global (NASDAQ:MBLY) and Continental (OTCMKTS:CTTAY) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Institutional & Insider Ownership

13.3% of Mobileye Global shares are held by institutional investors. Comparatively, 0.0% of Continental shares are held by institutional investors. 10.0% of Mobileye Global shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Mobileye Global and Continental’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-203.97%	0.33%	0.32%
Continental	0.19%	-4.89%	-0.99%

Earnings and Valuation

This table compares Mobileye Global and Continental”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobileye Global	$1.89 billion	4.15	-$392.00 million	($5.04)	-1.85
Continental	$22.26 billion	0.76	-$186.68 million	($0.16)	-52.59

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

Volatility and Risk

Mobileye Global has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Continental has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Mobileye Global and Continental, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	2	13	9	1	2.36
Continental	0	5	3	0	2.38

Mobileye Global currently has a consensus target price of $13.77, indicating a potential upside of 47.46%. Given Mobileye Global’s higher possible upside, equities research analysts plainly believe Mobileye Global is more favorable than Continental.

Summary

Mobileye Global beats Continental on 9 of the 15 factors compared between the two stocks.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.

About Continental

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.