Financial Analysis: Visteon Corporation (VC) & Tenneco (TEN)
Visteon Corporation (NYSE: VC) and Tenneco (NYSE:TEN) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, valuation, analyst recommendations and dividends.
This is a breakdown of recent ratings for Visteon Corporation and Tenneco, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Visteon Corporation currently has a consensus price target of $112.60, indicating a potential upside of 0.45%. Tenneco has a consensus price target of $66.63, indicating a potential upside of 26.47%. Given Tenneco’s higher possible upside, analysts plainly believe Tenneco is more favorable than Visteon Corporation.
This table compares Visteon Corporation and Tenneco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.9%. Visteon Corporation does not pay a dividend. Tenneco pays out 19.7% of its earnings in the form of a dividend.
Risk & Volatility
Visteon Corporation has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Tenneco has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500.
Insider and Institutional Ownership
96.7% of Tenneco shares are owned by institutional investors. 0.2% of Visteon Corporation shares are owned by insiders. Comparatively, 2.7% of Tenneco shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Visteon Corporation and Tenneco’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Visteon Corporation||$3.17 billion||1.10||$335.00 million||$4.19||26.75|
|Tenneco||$8.86 billion||0.32||$630.00 million||$5.07||10.39|
Tenneco has higher revenue and earnings than Visteon Corporation. Tenneco is trading at a lower price-to-earnings ratio than Visteon Corporation, indicating that it is currently the more affordable of the two stocks.
Tenneco beats Visteon Corporation on 9 of the 16 factors compared between the two stocks.
Visteon Corporation Company Profile
Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.
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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