Tenneco (NYSE: TEN) is one of 32 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its rivals? We will compare Tenneco to similar companies based on the strength of its valuation, risk, institutional ownership, dividends, profitability, earnings and analyst recommendations.

Earnings & Valuation

This table compares Tenneco and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tenneco $8.86 billion $630.00 million 12.35
Tenneco Competitors $5.85 billion $698.05 million 15.47

Tenneco has higher revenue, but lower earnings than its rivals. Tenneco is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent recommendations for Tenneco and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 4 4 0 2.33
Tenneco Competitors 145 896 1430 37 2.54

Tenneco presently has a consensus price target of $66.63, suggesting a potential upside of 6.40%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 3.76%. Given Tenneco’s higher possible upside, analysts clearly believe Tenneco is more favorable than its rivals.

Volatility and Risk

Tenneco has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500. Comparatively, Tenneco’s rivals have a beta of 1.40, suggesting that their average share price is 40% more volatile than the S&P 500.

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Tenneco pays out 19.7% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Tenneco is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Profitability

This table compares Tenneco and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenneco 3.17% 54.06% 7.95%
Tenneco Competitors -95.04% 3.40% -0.98%

Institutional and Insider Ownership

94.2% of Tenneco shares are held by institutional investors. Comparatively, 71.1% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 2.7% of Tenneco shares are held by company insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Tenneco beats its rivals on 9 of the 15 factors compared.

About Tenneco

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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