Harman International Industries (NYSE: HAR) and Cooper-Standard Holdings (NYSE:CPS) are both cyclical consumer goods & services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitabiliy and valuation.

Institutional & Insider Ownership

85.8% of Harman International Industries shares are owned by institutional investors. Comparatively, 94.8% of Cooper-Standard Holdings shares are owned by institutional investors. 0.9% of Harman International Industries shares are owned by insiders. Comparatively, 3.9% of Cooper-Standard Holdings shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Cooper-Standard Holdings does not pay a dividend. Harman International Industries pays out 27.6% of its earnings in the form of a dividend. Harman International Industries has increased its dividend for 6 consecutive years.

Risk & Volatility

Harman International Industries has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Cooper-Standard Holdings has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Harman International Industries and Cooper-Standard Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harman International Industries 0 10 1 0 2.09
Cooper-Standard Holdings 1 1 4 0 2.50

Harman International Industries presently has a consensus target price of $97.00, indicating a potential downside of 13.00%. Cooper-Standard Holdings has a consensus target price of $108.33, indicating a potential upside of 4.11%. Given Cooper-Standard Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe Cooper-Standard Holdings is more favorable than Harman International Industries.

Profitability

This table compares Harman International Industries and Cooper-Standard Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harman International Industries 5.12% 15.69% 6.40%
Cooper-Standard Holdings 4.27% 28.80% 8.45%

Valuation and Earnings

This table compares Harman International Industries and Cooper-Standard Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Harman International Industries N/A N/A N/A $5.07 21.99
Cooper-Standard Holdings $3.51 billion 0.53 $421.57 million $7.99 13.02

Cooper-Standard Holdings has higher revenue and earnings than Harman International Industries. Cooper-Standard Holdings is trading at a lower price-to-earnings ratio than Harman International Industries, indicating that it is currently the more affordable of the two stocks.

Summary

Cooper-Standard Holdings beats Harman International Industries on 10 of the 14 factors compared between the two stocks.

Harman International Industries Company Profile

Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.

Cooper-Standard Holdings Company Profile

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.

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