Reviewing Meritor (MTOR) & Fox Factory Holding Corp. (FOXF)
Meritor (NYSE: MTOR) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
Risk & Volatility
Meritor has a beta of 2.3, meaning that its stock price is 130% more volatile than the S&P 500. Comparatively, Fox Factory Holding Corp. has a beta of 0.7, meaning that its stock price is 30% less volatile than the S&P 500.
Earnings and Valuation
This table compares Meritor and Fox Factory Holding Corp.’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Meritor||$3.15 billion||0.74||$255.00 million||$6.02||4.37|
|Fox Factory Holding Corp.||$447.71 million||3.66||$74.45 million||$1.24||35.28|
Meritor has higher revenue and earnings than Fox Factory Holding Corp.. Meritor is trading at a lower price-to-earnings ratio than Fox Factory Holding Corp., indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations for Meritor and Fox Factory Holding Corp., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Fox Factory Holding Corp.||0||6||1||0||2.14|
Meritor currently has a consensus target price of $25.44, indicating a potential downside of 3.32%. Fox Factory Holding Corp. has a consensus target price of $35.67, indicating a potential downside of 18.48%. Given Meritor’s stronger consensus rating and higher probable upside, equities analysts clearly believe Meritor is more favorable than Fox Factory Holding Corp..
Insider and Institutional Ownership
93.2% of Meritor shares are owned by institutional investors. Comparatively, 97.0% of Fox Factory Holding Corp. shares are owned by institutional investors. 2.9% of Meritor shares are owned by company insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Meritor and Fox Factory Holding Corp.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Fox Factory Holding Corp.||10.67%||29.60%||16.67%|
Meritor beats Fox Factory Holding Corp. on 8 of the 14 factors compared between the two stocks.
Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.
About Fox Factory Holding Corp.
Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.
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