Tenneco (NYSE: TEN) and Motorcar Parts of America (NASDAQ:MPAA) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
This is a breakdown of current ratings and recommmendations for Tenneco and Motorcar Parts of America, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
Tenneco presently has a consensus price target of $66.63, suggesting a potential upside of 6.87%. Motorcar Parts of America has a consensus price target of $36.67, suggesting a potential upside of 25.40%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, analysts clearly believe Motorcar Parts of America is more favorable than Tenneco.
Valuation and Earnings
This table compares Tenneco and Motorcar Parts of America’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Tenneco||$8.86 billion||0.37||$630.00 million||$5.07||12.30|
|Motorcar Parts of America||$430.90 million||1.26||$77.71 million||$1.93||15.15|
Tenneco has higher revenue and earnings than Motorcar Parts of America. Tenneco is trading at a lower price-to-earnings ratio than Motorcar Parts of America, indicating that it is currently the more affordable of the two stocks.
This table compares Tenneco and Motorcar Parts of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||8.75%||16.77%||9.31%|
Risk & Volatility
Tenneco has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.
Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Motorcar Parts of America does not pay a dividend. Tenneco pays out 19.7% of its earnings in the form of a dividend.
Institutional and Insider Ownership
94.4% of Tenneco shares are held by institutional investors. 2.7% of Tenneco shares are held by insiders. Comparatively, 4.4% of Motorcar Parts of America shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Tenneco Company Profile
Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.
Motorcar Parts of America Company Profile
Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.
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