VALEO/S (OTCMKTS:VLEEY) and Tower International (NYSE:TOWR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.
Earnings & Valuation
This table compares VALEO/S and Tower International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VALEO/S||$20.97 billion||0.31||$1.00 billion||$2.08||6.48|
|Tower International||$1.99 billion||0.26||$47.62 million||$3.76||6.57|
Risk & Volatility
VALEO/S has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Tower International has a beta of 2.31, meaning that its stock price is 131% more volatile than the S&P 500.
VALEO/S pays an annual dividend of $0.60 per share and has a dividend yield of 4.5%. Tower International pays an annual dividend of $0.48 per share and has a dividend yield of 1.9%. VALEO/S pays out 28.8% of its earnings in the form of a dividend. Tower International pays out 12.8% 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. Tower International has raised its dividend for 2 consecutive years.
This is a summary of current recommendations and price targets for VALEO/S and Tower International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tower International has a consensus target price of $35.00, suggesting a potential upside of 41.59%. Given Tower International’s stronger consensus rating and higher possible upside, analysts clearly believe Tower International is more favorable than VALEO/S.
Insider and Institutional Ownership
0.3% of VALEO/S shares are held by institutional investors. Comparatively, 90.2% of Tower International shares are held by institutional investors. 6.2% of Tower International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This table compares VALEO/S and Tower International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Tower International beats VALEO/S on 12 of the 17 factors compared between the two stocks.
Valeo SA designs, produces, and sells components, integrated systems, and modules for the automotive sector worldwide. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; interior controls products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also manufactures powertrain systems, including electric powertrain systems for the electric cars; products that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it develops and manufactures systems, modules, and components to ensure the optimal thermal energy management of vehicles and in-vehicle comfort for passengers. Further, the company designs and produces lighting and wiper systems for drivers in all weather conditions. In addition, it offers original equipment spares to auto manufacturers and the independent aftermarket; replacement parts and accessories for passenger cars and commercial vehicles; air conditioning systems for buses; cabin 3D image processing software; hydraulic actuators; and torque converters. Valeo SA was founded in 1923 and is headquartered in Paris, France.
About Tower International
Tower International, Inc. manufactures and sells engineered automotive structural metal components and assemblies primarily for original equipment manufacturers. It operates in two segments, North America and Europe. The company provides body structures and assemblies, including structural metal components, which comprise body pillars, roof rails, and side sills; and Class A surfaces and assemblies that consist of body sides, hoods, doors, fenders, and pickup truck boxes. It also offers lower vehicle frames and structures, such as pickup truck and sport utility vehicle (SUV) full frames, automotive engine and rear suspension cradles, floor pan components, and cross members. In addition, the company offers complex body-in-white assemblies comprising various components and sub-assemblies. Its products have applications in small and large cars, crossovers, pickups, and SUVs. The company was formerly known as Tower Automotive, LLC and changed its name to Tower International, Inc. in October 2010. Tower International, Inc. was founded in 1993 and is headquartered in Livonia, Michigan.
Receive News & Ratings for VALEO/S Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for VALEO/S and related companies with MarketBeat.com's FREE daily email newsletter.