Meritor (NYSE:MTOR) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
This table compares Meritor and Commercial Vehicle Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Commercial Vehicle Group||3.29%||40.39%||9.11%|
Meritor has a beta of 2.53, meaning that its stock price is 153% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 2.03, meaning that its stock price is 103% more volatile than the S&P 500.
This is a summary of current ratings and price targets for Meritor and Commercial Vehicle Group, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Commercial Vehicle Group||0||0||0||0||N/A|
Meritor currently has a consensus price target of $27.20, indicating a potential upside of 64.85%. Given Meritor’s higher probable upside, research analysts plainly believe Meritor is more favorable than Commercial Vehicle Group.
Institutional & Insider Ownership
86.0% of Meritor shares are owned by institutional investors. Comparatively, 79.4% of Commercial Vehicle Group shares are owned by institutional investors. 2.3% of Meritor shares are owned by company insiders. Comparatively, 3.0% of Commercial Vehicle Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Meritor and Commercial Vehicle Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Meritor||$4.18 billion||0.34||$117.00 million||$3.03||5.45|
|Commercial Vehicle Group||$755.23 million||0.29||-$1.70 million||$0.44||15.86|
Meritor has higher revenue and earnings than Commercial Vehicle Group. Meritor is trading at a lower price-to-earnings ratio than Commercial Vehicle Group, indicating that it is currently the more affordable of the two stocks.
Meritor beats Commercial Vehicle Group on 10 of the 13 factors compared between the two stocks.
Meritor Company Profile
Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. It operates through two segments, Commercial Truck & Industrial; and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines, and braking and suspension systems primarily for medium-and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency, and other applications. This segment also engages in aftermarket business. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts, and other replacement and remanufactured parts to commercial vehicle aftermarket customers. This segment also offers various undercarriage products and systems for trailer applications. The company sells its products under the Meritor, Euclid, Trucktechnic, Meritor Green, Mach, and Meritor AllFit brands primarily to OEMs and its parts marketing operations, and dealers, as well as for other independent distributors and service garages in the aftermarket industry in North America, South America, Europe, and the Asia Pacific. The company was formerly known as ArvinMeritor, Inc. and changed its name to Meritor, Inc. in March 2011. Meritor, Inc. was founded in 1921 and is headquartered in Troy, Michigan.
Commercial Vehicle Group Company Profile
Commercial Vehicle Group, Inc., together with its subsidiaries, designs, engineers, produces, and sells a range of cab related products and systems in North America, Europe, and the Asia Pacific regions. It operates through two segments, the Global Truck and Bus, and the Global Construction and Agriculture. The Global Truck and Bus segment provides seats and seating systems, such as mechanical and air suspension, static, bus, and military seats, as well as seats for medium-and heavy-duty trucks (MD/HD trucks); and aftermarket seats and components. It also offers trim systems and components for the interior cabs of commercial vehicles, including vinyl or cloth-covered appliqués, armrests, map pocket compartments, carpets, and sound-reducing insulations; instrument panels; headliners/wall panels; storage systems; floor covering systems; sleeper bunks; grab handles and armrests; privacy curtains; and plastics decorating and finishing products, as well as exterior components for commercial recreational and specialty vehicles. In addition, this segment provides cab structures, sleeper boxes, body panels, structural components, bumper fascias and fender liners; and mirrors, wipers, and controls. The Global Construction and Agriculture segment provides electronic wire harness assemblies that function as current carrying devices used to provide electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial vehicles; and panel assemblies and cabinets. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; the medium-and heavy-construction vehicle market; and the military, bus, agriculture, specialty transportation, mining, industrial equipment, and off-road recreational markets. Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.
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