Visteon (VC) and Its Peers Critical Contrast

Visteon (NASDAQ:VC – Get Free Report) is one of 148 publicly-traded companies in the “Automobile Components” industry, but how does it contrast to its rivals? We will compare Visteon to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Insider and Institutional Ownership

99.7% of Visteon shares are held by institutional investors. Comparatively, 48.4% of shares of all “Automobile Components” companies are held by institutional investors. 2.0% of Visteon shares are held by company insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Visteon and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon 4.15% 11.36% 5.39%
Visteon Competitors -40.98% -0.27% -1.94%

Dividends

Visteon pays an annual dividend of $1.50 per share and has a dividend yield of 1.8%. Visteon pays out 25.9% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.8% and pay out 24.3% of their earnings in the form of a dividend. Visteon lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent recommendations for Visteon and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 1 4 8 0 2.54
Visteon Competitors 1092 4508 6144 203 2.46

Visteon currently has a consensus price target of $118.00, indicating a potential upside of 43.43%. As a group, “Automobile Components” companies have a potential upside of 61.96%. Given Visteon’s rivals higher probable upside, analysts clearly believe Visteon has less favorable growth aspects than its rivals.

Risk and Volatility

Visteon has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Visteon’s rivals have a beta of 3.87, indicating that their average share price is 287% more volatile than the S&P 500.

Earnings and Valuation

This table compares Visteon and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Visteon $3.77 billion $201.00 million 14.18
Visteon Competitors $6.50 billion $73.97 million 3.17

Visteon’s rivals have higher revenue, but lower earnings than Visteon. Visteon is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Visteon beats its rivals on 8 of the 15 factors compared.

About Visteon

(Get Free Report)

Visteon Corporation is a global automotive technology supplier focused on electronics and software for vehicle cockpits. Its products include digital instrument clusters, infotainment systems, automotive displays, and integrated cockpit computing platforms that bring multiple vehicle functions together. The company also develops connected-car and software solutions for automakers, supporting digital interfaces and information systems in vehicles. Its customers include automakers around the world, and Visteon serves markets across multiple regions.

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