Analyzing Metaldyne Performance Group (MPG) and Fox Factory Holding Corp. (FOXF)
Fox Factory Holding Corp. (NASDAQ: FOXF) and Metaldyne Performance Group (NYSE:MPG) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Institutional & Insider Ownership
97.0% of Fox Factory Holding Corp. shares are owned by institutional investors. Comparatively, 18.6% of Metaldyne Performance Group shares are owned by institutional investors. 21.4% of Fox Factory Holding Corp. shares are owned by company insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Fox Factory Holding Corp. and Metaldyne Performance Group’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Fox Factory Holding Corp.||$447.71 million||3.60||$74.45 million||$1.24||34.72|
|Metaldyne Performance Group||N/A||N/A||N/A||$1.44||15.38|
Fox Factory Holding Corp. has higher revenue and earnings than Metaldyne Performance Group. Metaldyne Performance Group is trading at a lower price-to-earnings ratio than Fox Factory Holding Corp., indicating that it is currently the more affordable of the two stocks.
Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Fox Factory Holding Corp. does not pay a dividend. Metaldyne Performance Group pays out 25.7% of its earnings in the form of a dividend.
Risk and Volatility
Fox Factory Holding Corp. has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Metaldyne Performance Group has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500.
This is a summary of current ratings for Fox Factory Holding Corp. and Metaldyne Performance Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fox Factory Holding Corp.||0||7||1||0||2.13|
|Metaldyne Performance Group||0||2||0||0||2.00|
Fox Factory Holding Corp. presently has a consensus target price of $37.00, indicating a potential downside of 14.05%. Metaldyne Performance Group has a consensus target price of $17.50, indicating a potential downside of 20.99%. Given Fox Factory Holding Corp.’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fox Factory Holding Corp. is more favorable than Metaldyne Performance Group.
This table compares Fox Factory Holding Corp. and Metaldyne Performance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fox Factory Holding Corp.||10.67%||29.60%||16.67%|
|Metaldyne Performance Group||2.60%||9.80%||2.11%|
Fox Factory Holding Corp. beats Metaldyne Performance Group on 10 of the 13 factors compared between the two stocks.
About Fox Factory Holding Corp.
Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.
About Metaldyne Performance Group
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.
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