Iochpe-Maxion (IOCJY) & Its Rivals Critical Review

Iochpe-Maxion (OTCMKTS:IOCJY) is one of 148 publicly-traded companies in the “Automobile Components” industry, but how does it contrast to its peers? We will compare Iochpe-Maxion to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, profitability, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current ratings for Iochpe-Maxion and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iochpe-Maxion	1	1	0	0	1.50
Iochpe-Maxion Competitors	1087	4496	6133	202	2.46

As a group, “Automobile Components” companies have a potential upside of 72.75%. Given Iochpe-Maxion’s peers stronger consensus rating and higher possible upside, analysts plainly believe Iochpe-Maxion has less favorable growth aspects than its peers.

Valuation & Earnings

This table compares Iochpe-Maxion and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Iochpe-Maxion	$2.75 billion	$17.62 million	13.15
Iochpe-Maxion Competitors	$6.50 billion	$70.54 million	4.92

Iochpe-Maxion’s peers have higher revenue and earnings than Iochpe-Maxion. Iochpe-Maxion is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Iochpe-Maxion and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iochpe-Maxion	0.63%	2.05%	0.66%
Iochpe-Maxion Competitors	-41.06%	-0.47%	-2.05%

Volatility & Risk

Iochpe-Maxion has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Iochpe-Maxion’s peers have a beta of 3.87, suggesting that their average stock price is 287% more volatile than the S&P 500.

Institutional & Insider Ownership

48.4% of shares of all “Automobile Components” companies are owned by institutional investors. 19.6% of shares of all “Automobile Components” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Iochpe-Maxion peers beat Iochpe-Maxion on 9 of the 13 factors compared.

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.