Critical Comparison: Fiat Chrysler Automobiles (FCAU) and Hennessy Capital Acquisition (BLBD)

Fiat Chrysler Automobiles (NYSE: FCAU) and Hennessy Capital Acquisition (NASDAQ:BLBD) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a summary of current recommendations and price targets for Fiat Chrysler Automobiles and Hennessy Capital Acquisition, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fiat Chrysler Automobiles 0 6 6 0 2.50
Hennessy Capital Acquisition 0 0 2 0 3.00

Fiat Chrysler Automobiles presently has a consensus price target of $16.87, indicating a potential downside of 29.52%. Hennessy Capital Acquisition has a consensus price target of $22.00, indicating a potential upside of 13.99%. Given Hennessy Capital Acquisition’s stronger consensus rating and higher probable upside, analysts clearly believe Hennessy Capital Acquisition is more favorable than Fiat Chrysler Automobiles.

Risk & Volatility

Fiat Chrysler Automobiles has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, Hennessy Capital Acquisition has a beta of 1.67, suggesting that its share price is 67% more volatile than the S&P 500.

Valuation & Earnings

This table compares Fiat Chrysler Automobiles and Hennessy Capital Acquisition’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fiat Chrysler Automobiles $122.56 billion 0.30 $2.00 billion $2.23 10.73
Hennessy Capital Acquisition $990.60 million 0.47 $28.80 million $0.61 31.64

Fiat Chrysler Automobiles has higher revenue and earnings than Hennessy Capital Acquisition. Fiat Chrysler Automobiles is trading at a lower price-to-earnings ratio than Hennessy Capital Acquisition, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

31.2% of Fiat Chrysler Automobiles shares are held by institutional investors. Comparatively, 94.8% of Hennessy Capital Acquisition shares are held by institutional investors. 16.7% of Hennessy Capital Acquisition shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Fiat Chrysler Automobiles and Hennessy Capital Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fiat Chrysler Automobiles 2.81% 16.08% 3.21%
Hennessy Capital Acquisition 2.91% -24.21% 9.52%

Summary

Hennessy Capital Acquisition beats Fiat Chrysler Automobiles on 9 of the 14 factors compared between the two stocks.

Fiat Chrysler Automobiles Company Profile

Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, manufactures, distributes, and sells vehicles, components, and production systems. The company operates through six segments: NAFTA, LATAM, APAC, EMEA, Maserati, and Components. It provides passenger cars, light trucks, and light commercial vehicles under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, and Ram brand names; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand. The company also produces and sells lighting components, body control units, suspensions, shock absorbers, electronic systems, exhaust systems, powertrain components, engine control units, plastic molding components, and after-market products under the Magneti Marelli brand name. In addition, it offers cast iron components for engines, gearboxes, transmissions and suspension systems, aluminum cylinder heads, and engine blocks under the Teksid brand; and designs and produces industrial automation systems and related products for the automotive industry under the Comau brand name. Further, the company provides retail and dealer financings; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 140 countries. The company was formerly known as Fiat S.p.A. and changed its name to Fiat Chrysler Automobiles N.V. in October 2014. Fiat Chrysler Automobiles N.V. was founded in 1899 and is based in London, the United Kingdom.

Hennessy Capital Acquisition Company Profile

Blue Bird Corporation designs, engineers, manufactures, and sells school buses and aftermarket parts in the United States, Canada, and internationally. It offers Type C, Type D, and specialty buses, as well as Sigma, a bus for public transportation. The company sells its products through a network of dealers, as well as directly to fleet operators, the United States government, and state governments. It also distributes aftermarket parts of various makes. The company was founded in 1927 and is headquartered in Fort Valley, Georgia.

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