Superior Industries International (NYSE: SUP) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Fox Factory Holding Corp. does not pay a dividend. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Superior Industries International and Fox Factory Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Industries International 1.23% 9.54% 5.01%
Fox Factory Holding Corp. 10.67% 29.60% 16.67%

Risk & Volatility

Superior Industries International has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500. Comparatively, Fox Factory Holding Corp. has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Superior Industries International and Fox Factory Holding Corp., as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Industries International 0 1 2 0 2.67
Fox Factory Holding Corp. 0 7 1 0 2.13

Superior Industries International currently has a consensus price target of $24.67, indicating a potential upside of 49.04%. Fox Factory Holding Corp. has a consensus price target of $37.50, indicating a potential downside of 14.87%. Given Superior Industries International’s stronger consensus rating and higher possible upside, research analysts clearly believe Superior Industries International is more favorable than Fox Factory Holding Corp..

Institutional & Insider Ownership

82.0% of Superior Industries International shares are owned by institutional investors. Comparatively, 97.1% of Fox Factory Holding Corp. shares are owned by institutional investors. 1.5% of Superior Industries International shares are owned by insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are owned by 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.

Valuation and Earnings

This table compares Superior Industries International and Fox Factory Holding Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Superior Industries International $778.75 million 0.53 $76.24 million $0.25 66.20
Fox Factory Holding Corp. $447.71 million 3.68 $74.45 million $1.24 35.52

Superior Industries International has higher revenue and earnings than Fox Factory Holding Corp.. Fox Factory Holding Corp. is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.

Summary

Fox Factory Holding Corp. beats Superior Industries International on 9 of the 16 factors compared between the two stocks.

Superior Industries International Company Profile

Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.

Fox Factory Holding Corp. Company Profile

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.

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