Fenix Parts (OTCMKTS: FENX) and Metaldyne Performance Group (NYSE:MPG) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Dividends

Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Fenix Parts does not pay a dividend. Metaldyne Performance Group pays out 26.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Fenix Parts and Metaldyne Performance Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fenix Parts 0 0 0 0 N/A
Metaldyne Performance Group 0 1 0 0 2.00

Metaldyne Performance Group has a consensus price target of $21.00, suggesting a potential downside of 4.11%. Given Metaldyne Performance Group’s higher possible upside, analysts plainly believe Metaldyne Performance Group is more favorable than Fenix Parts.

Institutional & Insider Ownership

4.1% of Fenix Parts shares are owned by institutional investors. Comparatively, 18.6% of Metaldyne Performance Group shares are owned by institutional investors. 16.6% of Fenix Parts shares are owned by company insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Fenix Parts and Metaldyne Performance Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fenix Parts -30.56% -66.11% -34.71%
Metaldyne Performance Group 2.60% 9.80% 2.11%

Valuation & Earnings

This table compares Fenix Parts and Metaldyne Performance Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fenix Parts $132.10 million 0.03 -$42.86 million ($1.90) -0.11
Metaldyne Performance Group N/A N/A N/A $1.39 15.76

Metaldyne Performance Group has lower revenue, but higher earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.

Summary

Metaldyne Performance Group beats Fenix Parts on 8 of the 11 factors compared between the two stocks.

Fenix Parts Company Profile

Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.

Metaldyne Performance Group Company Profile

Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.

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