Harman International Industries (NYSE: HAR) is one of 32 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it weigh in compared to its competitors? We will compare Harman International Industries to similar businesses based on the strength of its risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.

Institutional & Insider Ownership

85.8% of Harman International Industries shares are held by institutional investors. Comparatively, 68.1% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 0.9% of Harman International Industries shares are held by company insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Harman International Industries and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harman International Industries 0 6 0 0 2.00
Harman International Industries Competitors 213 1022 1458 47 2.49

Harman International Industries currently has a consensus price target of $107.25, indicating a potential downside of 3.81%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 5.54%. Given Harman International Industries’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Harman International Industries has less favorable growth aspects than its competitors.

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Harman International Industries pays out 27.6% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.5% and pay out 21.6% of their earnings in the form of a dividend. Harman International Industries has raised its dividend for 6 consecutive years. Harman International Industries lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Harman International Industries and its competitors’ 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%
Harman International Industries Competitors -95.27% 3.29% -1.03%

Risk & Volatility

Harman International Industries has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Harman International Industries’ competitors have a beta of 1.37, indicating that their average share price is 37% more volatile than the S&P 500.

Valuation & Earnings

This table compares Harman International Industries and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Harman International Industries N/A N/A 21.99
Harman International Industries Competitors $5.85 billion $698.04 million 14.15

Harman International Industries’ competitors have higher revenue and earnings than Harman International Industries. Harman International Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

Harman International Industries competitors beat Harman International Industries on 8 of the 13 factors compared.

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.

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