Metaldyne Performance Group (NYSE: MPG) and Visteon Corporation (NYSE:VC) are both cyclical consumer goods & services companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Dividends

Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Visteon Corporation does not pay a dividend. Metaldyne Performance Group pays out 25.7% of its earnings in the form of a dividend.

Profitability

This table compares Metaldyne Performance Group and Visteon Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Metaldyne Performance Group 2.60% 9.80% 2.11%
Visteon Corporation 4.35% 27.56% 8.67%

Institutional & Insider Ownership

18.6% of Metaldyne Performance Group shares are owned by institutional investors. 5.1% of Metaldyne Performance Group shares are owned by insiders. Comparatively, 0.2% of Visteon Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Metaldyne Performance Group and Visteon Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Metaldyne Performance Group N/A N/A N/A $1.44 15.21
Visteon Corporation $3.17 billion 1.17 $335.00 million $4.19 28.40

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

Analyst Ratings

This is a summary of current recommendations and price targets for Metaldyne Performance Group and Visteon Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Metaldyne Performance Group 0 2 0 0 2.00
Visteon Corporation 0 4 7 0 2.64

Metaldyne Performance Group currently has a consensus price target of $17.50, indicating a potential downside of 20.09%. Visteon Corporation has a consensus price target of $112.60, indicating a potential downside of 5.37%. Given Visteon Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Visteon Corporation is more favorable than Metaldyne Performance Group.

Risk and Volatility

Metaldyne Performance Group has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Visteon Corporation has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Summary

Visteon Corporation beats Metaldyne Performance Group on 9 of the 13 factors compared between the two stocks.

Metaldyne Performance Group Company Profile

Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.

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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