Cooper-Standard (NYSE: CPS) and Visteon (NYSE:VC) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Profitability

This table compares Cooper-Standard and Visteon’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cooper-Standard 3.88% 24.99% 7.71%
Visteon 4.83% 29.13% 9.06%

Volatility and Risk

Cooper-Standard has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Visteon has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.

Earnings and Valuation

This table compares Cooper-Standard and Visteon’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cooper-Standard $3.47 billion 0.62 $138.98 million $7.31 16.92
Visteon $3.16 billion 1.29 $75.00 million $4.73 27.67

Cooper-Standard has higher revenue and earnings than Visteon. Cooper-Standard is trading at a lower price-to-earnings ratio than Visteon, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

95.9% of Cooper-Standard shares are held by institutional investors. 1.1% of Cooper-Standard shares are held by insiders. Comparatively, 0.2% of Visteon 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Cooper-Standard and Visteon, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cooper-Standard 1 3 2 0 2.17
Visteon 0 5 9 0 2.64

Cooper-Standard presently has a consensus price target of $114.80, suggesting a potential downside of 7.19%. Visteon has a consensus price target of $122.33, suggesting a potential downside of 6.53%. Given Visteon’s stronger consensus rating and higher probable upside, analysts clearly believe Visteon is more favorable than Cooper-Standard.

Summary

Visteon beats Cooper-Standard on 9 of the 14 factors compared between the two stocks.

About Cooper-Standard

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.

About Visteon

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

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