Critical Comparison: Superior Industries International (SUP) vs. Autoliv (ALV)
Superior Industries International (NYSE: SUP) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
This table compares Superior Industries International and Autoliv’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||1.23%||9.54%||5.01%|
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.5%. Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 2.2%. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Autoliv pays out 38.0% of its earnings in the form of a dividend. Autoliv has raised its dividend for 7 consecutive years.
Insider & Institutional Ownership
82.2% of Superior Industries International shares are held by institutional investors. Comparatively, 34.8% of Autoliv shares are held by institutional investors. 1.5% of Superior Industries International shares are held by company insiders. Comparatively, 0.3% of Autoliv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a breakdown of current recommendations for Superior Industries International and Autoliv, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
Superior Industries International currently has a consensus target price of $24.67, indicating a potential upside of 68.95%. Autoliv has a consensus target price of $104.22, indicating a potential downside of 5.26%. Given Superior Industries International’s stronger consensus rating and higher probable upside, research analysts plainly believe Superior Industries International is more favorable than Autoliv.
Volatility & Risk
Superior Industries International has a beta of 0.72, meaning that its share price is 28% less volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.
Earnings and Valuation
This table compares Superior Industries International and Autoliv’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$778.75 million||0.47||$76.24 million||$0.25||58.40|
|Autoliv||$10.22 billion||0.94||$1.28 billion||$6.32||17.41|
Autoliv has higher revenue and earnings than Superior Industries International. Autoliv is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.
Autoliv beats Superior Industries International on 12 of the 17 factors compared between the two stocks.
About Superior Industries International
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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.
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