Critical Analysis: Iochpe-Maxion (OTCMKTS:IOCJY) versus Camping World (NYSE:CWH)

Iochpe-Maxion (OTCMKTS:IOCJY) and Camping World (NYSE:CWH) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current recommendations and price targets for Iochpe-Maxion and Camping World, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iochpe-Maxion	0	1	0	0	2.00
Camping World	1	3	8	0	2.58

Camping World has a consensus target price of $17.67, suggesting a potential upside of 81.29%. Given Camping World’s stronger consensus rating and higher probable upside, analysts plainly believe Camping World is more favorable than Iochpe-Maxion.

Dividends

Iochpe-Maxion pays an annual dividend of $0.02 per share and has a dividend yield of 3.3%. Camping World pays an annual dividend of $0.50 per share and has a dividend yield of 5.1%. Iochpe-Maxion pays out 28.6% of its earnings in the form of a dividend. Camping World pays out -53.8% 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. Camping World has raised its dividend for 1 consecutive years. Camping World is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

52.5% of Camping World shares are held by institutional investors. 35.6% of Camping World shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Iochpe-Maxion	1.28%	4.09%	1.30%
Camping World	-0.85%	3.80%	0.37%

Earnings and Valuation

This table compares Iochpe-Maxion and Camping World”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iochpe-Maxion	$2.84 billion	0.10	$49.08 million	$0.07	8.61
Camping World	$6.40 billion	0.16	-$38.64 million	($0.93)	-10.48

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

Volatility and Risk

Iochpe-Maxion has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, Camping World has a beta of 1.95, suggesting that its share price is 95% more volatile than the S&P 500.

Summary

Camping World beats Iochpe-Maxion on 11 of the 17 factors compared between the two stocks.

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.

About Camping World

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.