Analyzing Exco Technologies (OTCMKTS:EXCOF) and Iochpe-Maxion (OTCMKTS:IOCJY)

Exco Technologies (OTCMKTS:EXCOF) and Iochpe-Maxion (OTCMKTS:IOCJY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, risk, institutional ownership, profitability, analyst recommendations and valuation.

Dividends

Exco Technologies pays an annual dividend of $0.20 per share and has a dividend yield of 3.3%. Iochpe-Maxion pays an annual dividend of $0.01 per share and has a dividend yield of 1.8%. Exco Technologies pays out 25.2% of its earnings in the form of a dividend. Iochpe-Maxion pays out 25.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Valuation and Earnings

This table compares Exco Technologies and Iochpe-Maxion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Exco Technologies	N/A	N/A	N/A	$0.80	7.69
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.04	13.53

Iochpe-Maxion has higher revenue and earnings than Exco Technologies. Exco Technologies is trading at a lower price-to-earnings ratio than Iochpe-Maxion, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Exco Technologies and Iochpe-Maxion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Exco Technologies	N/A	N/A	N/A
Iochpe-Maxion	0.63%	2.08%	0.68%

Analyst Ratings

This is a summary of current ratings and price targets for Exco Technologies and Iochpe-Maxion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Exco Technologies	0	0	0	0	0.00
Iochpe-Maxion	0	1	0	0	2.00

Insider and Institutional Ownership

13.7% of Exco Technologies shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Iochpe-Maxion beats Exco Technologies on 7 of the 10 factors compared between the two stocks.

About Exco Technologies

Exco Technologies Limited, together with its subsidiaries, designs, develops, manufactures, and sells dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries. It operates through two segments, Casting and Extrusion, and Automotive Solutions. The Casting and Extrusion segment designs, develops, and manufactures tooling and consumable parts for aluminum die-casting and aluminum extrusion machines. The Automotive Solutions segment produces automotive interior trim components and assemblies primarily for passenger and light truck vehicles. It offers synthetic net and other cargo restraint products, injection-molded components, shift/brake boots, instrument panel components, sun visors, seat covers, head rests, other cut and sew products, and related interior trim components and assemblies. This segment also supplies plastic trunk trays and organizer systems, floor mats, bumper covers, die cut leather sets for seating applications, and other interior trim applications, as well as injection-molded, hand-sewn, machine-sewn, and hand-wrapped interior trim components of all sorts. The company has operations in Canada, the United States, Europe, Mexico, Morocco, Asia, and internationally. Exco Technologies Limited was founded in 1952 and is based in Markham, Canada.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.