Comparing Autoliv (ALV) & Delphi Automotive PLC (DLPH)
Autoliv (NYSE: ALV) and Delphi Automotive PLC (NYSE:DLPH) are both large-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, institutional ownership, risk, earnings, profitability, analyst recommendations and valuation.
Earnings & Valuation
This table compares Autoliv and Delphi Automotive PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Autoliv||$10.22 billion||1.06||$1.28 billion||$6.32||19.64|
|Delphi Automotive PLC||$17.01 billion||1.55||$3.06 billion||$4.72||20.92|
Delphi Automotive PLC has higher revenue and earnings than Autoliv. Autoliv is trading at a lower price-to-earnings ratio than Delphi Automotive PLC, indicating that it is currently the more affordable of the two stocks.
This table compares Autoliv and Delphi Automotive PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Delphi Automotive PLC||7.51%||60.14%||14.35%|
Volatility and Risk
Autoliv has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500. Comparatively, Delphi Automotive PLC has a beta of 1.36, meaning that its stock price is 36% more volatile than the S&P 500.
Institutional and Insider Ownership
32.7% of Autoliv shares are owned by institutional investors. Comparatively, 90.6% of Delphi Automotive PLC shares are owned by institutional investors. 0.3% of Autoliv shares are owned by company insiders. Comparatively, 0.3% of Delphi Automotive PLC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 1.9%. Delphi Automotive PLC pays an annual dividend of $1.16 per share and has a dividend yield of 1.2%. Autoliv pays out 38.0% of its earnings in the form of a dividend. Delphi Automotive PLC pays out 24.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Delphi Automotive PLC has raised its dividend for 7 consecutive years.
This is a breakdown of recent ratings and target prices for Autoliv and Delphi Automotive PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Delphi Automotive PLC||1||4||13||0||2.67|
Autoliv currently has a consensus target price of $111.65, indicating a potential downside of 10.07%. Delphi Automotive PLC has a consensus target price of $105.06, indicating a potential upside of 6.41%. Given Delphi Automotive PLC’s stronger consensus rating and higher possible upside, analysts clearly believe Delphi Automotive PLC is more favorable than Autoliv.
Delphi Automotive PLC beats Autoliv on 15 of the 17 factors compared between the two stocks.
Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.
About Delphi Automotive PLC
Delphi Automotive PLC is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic, powertrain and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, Powertrain Systems, and Electronics and Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Powertrain Systems segment offers products for engine management systems (EMS). The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.
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