Fox Factory Holding Corp. (NASDAQ: FOXF) and Visteon Corporation (NYSE:VC) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitabiliy, dividends, valuation, analyst recommendations, institutional ownership and risk.

Valuation and Earnings

This table compares Fox Factory Holding Corp. and Visteon Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Fox Factory Holding Corp. $429.19 million 3.38 $69.55 million $1.24 31.37
Visteon Corporation $3.17 billion 1.10 $335.00 million $4.19 26.59

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

Profitability

This table compares Fox Factory Holding Corp. and Visteon Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fox Factory Holding Corp. 10.67% 30.70% 17.09%
Visteon Corporation 4.35% 27.56% 8.67%

Analyst Ratings

This is a breakdown of current ratings and target prices for Fox Factory Holding Corp. and Visteon Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fox Factory Holding Corp. 0 5 1 0 2.17
Visteon Corporation 0 4 7 0 2.64

Fox Factory Holding Corp. presently has a consensus price target of $31.60, suggesting a potential downside of 18.77%. Visteon Corporation has a consensus price target of $112.60, suggesting a potential upside of 1.08%. Given Visteon Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Visteon Corporation is more favorable than Fox Factory Holding Corp..

Institutional and Insider Ownership

97.1% of Fox Factory Holding Corp. shares are held by institutional investors. 21.4% of Fox Factory Holding Corp. shares are held by insiders. Comparatively, 0.2% of Visteon Corporation shares are held 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.

Risk and Volatility

Fox Factory Holding Corp. has a beta of 0.69, meaning that its share price is 31% less volatile than the S&P 500. Comparatively, Visteon Corporation has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Fox Factory Holding Corp. Company Profile

Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.

Visteon Corporation Company Profile

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

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