Head-To-Head Review: Tenneco (TEN) versus Its Peers
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 peers? We will compare Tenneco to related businesses based on the strength of its analyst recommendations, institutional ownership, valuation, risk, profitability, dividends and earnings.
This is a breakdown of recent recommendations for Tenneco and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tenneco presently has a consensus target price of $66.63, indicating a potential upside of 9.06%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 0.14%. Given Tenneco’s higher possible upside, analysts clearly believe Tenneco is more favorable than its peers.
This table compares Tenneco and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Tenneco and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Tenneco||$8.86 billion||$630.00 million||12.05|
|Tenneco Competitors||$5.85 billion||$698.05 million||15.58|
Tenneco has higher revenue, but lower earnings than its peers. Tenneco is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Risk and Volatility
Tenneco has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Tenneco’s peers have a beta of 1.40, meaning that their average share price is 40% more volatile than the S&P 500.
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 peers, given its higher yield and lower payout ratio.
Institutional and Insider Ownership
94.4% of Tenneco shares are owned by institutional investors. Comparatively, 67.9% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 2.7% of Tenneco shares are owned by insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Tenneco beats its peers 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.
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