Fenix Parts (NASDAQ: FENX) and Superior Industries International (NYSE:SUP) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Institutional and Insider Ownership
52.3% of Fenix Parts shares are held by institutional investors. Comparatively, 82.0% of Superior Industries International shares are held by institutional investors. 16.6% of Fenix Parts shares are held by insiders. Comparatively, 1.5% of Superior Industries International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of recent ratings and recommmendations for Fenix Parts and Superior Industries International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||2||0||2.67|
Superior Industries International has a consensus price target of $24.67, indicating a potential upside of 59.65%. Given Superior Industries International’s higher probable upside, analysts clearly believe Superior Industries International is more favorable than Fenix Parts.
Valuation and Earnings
This table compares Fenix Parts and Superior Industries International’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$732.70 million||0.53||$41.38 million||$0.25||61.80|
Superior Industries International has higher revenue and earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. Fenix Parts does not pay a dividend. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This table compares Fenix Parts and Superior Industries International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||1.23%||9.54%||5.01%|
Superior Industries International beats Fenix Parts on 9 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.
Superior Industries International Company Profile
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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