Harman International Industries (NYSE: HAR) and Horizon Global Corporation (NYSE:HZN) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, earnings, profitability, valuation and institutional ownership.

Profitability

This table compares Harman International Industries and Horizon Global Corporation’s 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%
Horizon Global Corporation -1.45% 18.86% 2.76%

Earnings and Valuation

This table compares Harman International Industries and Horizon Global Corporation’s gross revenue, earnings per share 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
Horizon Global Corporation $792.20 million 0.53 $58.76 million ($0.67) -25.28

Horizon Global Corporation has higher revenue and earnings than Harman International Industries. Horizon Global Corporation 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.

Institutional and Insider Ownership

85.8% of Harman International Industries shares are owned by institutional investors. Comparatively, 94.0% of Horizon Global Corporation shares are owned by institutional investors. 0.9% of Harman International Industries shares are owned by insiders. Comparatively, 1.3% of Horizon Global Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Harman International Industries has a beta of 1.64, meaning that its share price is 64% more volatile than the S&P 500. Comparatively, Horizon Global Corporation has a beta of 1.87, meaning that its share price is 87% more volatile than the S&P 500.

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Horizon Global Corporation 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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Harman International Industries and Horizon Global Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harman International Industries 0 6 0 0 2.00
Horizon Global Corporation 1 2 4 0 2.43

Harman International Industries currently has a consensus price target of $107.25, suggesting a potential downside of 3.81%. Horizon Global Corporation has a consensus price target of $20.17, suggesting a potential upside of 19.05%. Given Horizon Global Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Horizon Global Corporation is more favorable than Harman International Industries.

Summary

Horizon Global Corporation beats Harman International Industries on 9 of the 14 factors compared between the two stocks.

About Harman International Industries

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.

About Horizon Global Corporation

Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.

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