Autoliv (NYSE: ALV) and Cooper-Standard Holdings (NYSE:CPS) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitabiliy, risk, institutional ownership, earnings, dividends and analyst recommendations.

Volatility and Risk

Autoliv has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, Cooper-Standard Holdings has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Earnings & Valuation

This table compares Autoliv and Cooper-Standard Holdings’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Autoliv $10.22 billion 0.93 $1.28 billion $6.32 17.22
Cooper-Standard Holdings $3.51 billion 0.52 $421.57 million $7.93 12.78

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

Analyst Recommendations

This is a summary of current ratings and target prices for Autoliv and Cooper-Standard Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Autoliv 3 8 6 0 2.18
Cooper-Standard Holdings 1 1 4 0 2.50

Autoliv presently has a consensus target price of $104.09, suggesting a potential downside of 4.38%. Cooper-Standard Holdings has a consensus target price of $108.33, suggesting a potential upside of 6.91%. Given Cooper-Standard Holdings’ stronger consensus rating and higher probable upside, analysts clearly believe Cooper-Standard Holdings is more favorable than Autoliv.

Institutional & Insider Ownership

33.0% of Autoliv shares are owned by institutional investors. Comparatively, 95.0% of Cooper-Standard Holdings shares are owned by institutional investors. 0.3% of Autoliv shares are owned by company insiders. Comparatively, 3.9% of Cooper-Standard Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Autoliv 5.44% 13.96% 6.75%
Cooper-Standard Holdings 4.22% 26.90% 8.12%

Dividends

Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 2.2%. Cooper-Standard Holdings does not pay a dividend. Autoliv pays out 38.0% of its earnings in the form of a dividend. Autoliv has raised its dividend for 7 consecutive years.

Summary

Autoliv beats Cooper-Standard Holdings on 9 of the 17 factors compared between the two stocks.

About Autoliv

Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.

About Cooper-Standard Holdings

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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