Federal Signal (NYSE:FSS) and Brilliance China Automotive (OTCMKTS:BCAUY) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, risk, profitability, analyst recommendations and earnings.
Earnings & Valuation
This table compares Federal Signal and Brilliance China Automotive’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Federal Signal||$898.50 million||1.57||$61.60 million||$0.85||27.49|
|Brilliance China Automotive||$771.82 million||5.57||$554.15 million||N/A||N/A|
This is a summary of recent ratings and target prices for Federal Signal and Brilliance China Automotive, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Brilliance China Automotive||0||1||1||0||2.50|
Risk and Volatility
Federal Signal has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Brilliance China Automotive has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500.
Federal Signal pays an annual dividend of $0.32 per share and has a dividend yield of 1.4%. Brilliance China Automotive pays an annual dividend of $0.12 per share and has a dividend yield of 1.4%. Federal Signal pays out 37.6% of its earnings in the form of a dividend.
This table compares Federal Signal and Brilliance China Automotive’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Brilliance China Automotive||N/A||N/A||N/A|
Insider & Institutional Ownership
88.1% of Federal Signal shares are held by institutional investors. Comparatively, 0.0% of Brilliance China Automotive shares are held by institutional investors. 4.3% of Federal Signal shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Federal Signal beats Brilliance China Automotive on 6 of the 11 factors compared between the two stocks.
About Federal Signal
Federal Signal Corporation, together with its subsidiaries, designs, manufactures, and supplies a suite of products and integrated solutions for municipal, governmental, industrial, and commercial customers in the United States, Canada, Europe, and internationally. It operates through two segments, Environmental Solutions Group and Safety and Security Systems Group. The Environmental Solutions Group segment offers a range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, and water blasting equipment under the Elgin, Vactor, Guzzler, Westech, and Jetstream brand names. Is also manufactures dump truck bodies and trailers for maintenance and infrastructure end-markets under the Ox Bodies, Crysteel, J-Craft, Duraclass, Rugby, and Travis brand names. In addition, this segment engages in the sale of parts, service and repair, equipment rental, and training activities under the FS Solutions brand. The Safety and Security Systems Group segment provides systems and products for campus and community alerting, emergency vehicles, first responder interoperable communications, and industrial communications, as well as command and municipal networked security. Its products include vehicle lightbars and sirens, public warning sirens, general alarm systems, public address systems, and public safety software. This segment sells its products under the Federal Signal, Federal Signal VAMA, and Victor brand names. The company sells its products through wholesaler, distributor, independent manufacturer representative, original equipment manufacturer, and direct sales force, as well as independent foreign distributor. Federal Signal Corporation was founded in 1901 and is headquartered in Oak Brook, Illinois.
About Brilliance China Automotive
Brilliance China Automotive Holdings Limited, an investment holding company, manufactures and sells minibuses and automotive components in the People's Republic of China. The company offers its minibuses under the JinBei and Granse brands, as well as multi-purpose vehicles under the Huasong brand. Its automotive components include mouldings, seats, axles, safety and airbag systems, interior decoration products, and engines for minibuses, sedans, sport utility vehicles, light duty trucks, etc. The company also offers sport activity vehicles. Brilliance China Automotive Holdings Limited has strategic partnerships and alliances with BMW, Toyota, Magna, Bosch, Continental, Delphi, TI Automotive, and Johnson Controls. The company was founded in 1949 and is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange.
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