Tenneco (NYSE: TEN) 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 Tenneco to related businesses based on the strength of its institutional ownership, earnings, dividends, valuation, profitability, analyst recommendations and risk.

Insider and Institutional Ownership

94.4% of Tenneco shares are held by institutional investors. Comparatively, 71.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 2.7% of Tenneco shares are held by company insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Tenneco and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenneco 3.17% 54.06% 7.95%
Tenneco Competitors -95.27% 3.29% -1.03%

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Tenneco pays out 19.7% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Tenneco is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Tenneco and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tenneco $8.86 billion $630.00 million 12.33
Tenneco Competitors $5.85 billion $698.05 million 15.69

Tenneco has higher revenue, but lower earnings than its competitors. Tenneco is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Tenneco has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Tenneco’s competitors have a beta of 1.40, suggesting that their average share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Tenneco and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 4 4 0 2.33
Tenneco Competitors 143 885 1418 37 2.54

Tenneco currently has a consensus price target of $66.63, indicating a potential upside of 6.57%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 0.04%. Given Tenneco’s higher possible upside, equities analysts clearly believe Tenneco is more favorable than its competitors.

Summary

Tenneco beats its competitors on 9 of the 15 factors compared.

Tenneco Company Profile

Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.

Receive News & Ratings for Tenneco Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Tenneco Inc. and related companies with MarketBeat.com's FREE daily email newsletter.