Critical Comparison: Visteon (VC) vs. Cooper-Standard (CPS)

Visteon (NYSE: VC) and Cooper-Standard (NYSE:CPS) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, analyst recommendations, risk, valuation, dividends and institutional ownership.

Insider & Institutional Ownership

96.0% of Cooper-Standard shares are owned by institutional investors. 0.2% of Visteon shares are owned by company insiders. Comparatively, 1.1% of Cooper-Standard shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations for Visteon and Cooper-Standard, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 0 5 9 0 2.64
Cooper-Standard 1 3 2 0 2.17

Visteon currently has a consensus target price of $122.33, indicating a potential downside of 4.63%. Cooper-Standard has a consensus target price of $114.80, indicating a potential downside of 4.18%. Given Cooper-Standard’s higher probable upside, analysts clearly believe Cooper-Standard is more favorable than Visteon.

Profitability

This table compares Visteon and Cooper-Standard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon 4.83% 29.13% 9.06%
Cooper-Standard 3.88% 24.99% 7.71%

Earnings & Valuation

This table compares Visteon and Cooper-Standard’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visteon $3.16 billion 1.26 $75.00 million $4.73 27.12
Cooper-Standard $3.47 billion 0.60 $138.98 million $7.31 16.39

Cooper-Standard has higher revenue and earnings than Visteon. Cooper-Standard is trading at a lower price-to-earnings ratio than Visteon, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Visteon has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Cooper-Standard has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500.

Summary

Visteon beats Cooper-Standard on 8 of the 14 factors compared between the two stocks.

About Visteon

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.

About Cooper-Standard

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.

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