Autoliv (NYSE:ALV) and Dongfeng Motor Group (OTCMKTS:DNFGY) are both mid-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, earnings, profitability, institutional ownership and dividends.
Earnings and Valuation
This table compares Autoliv and Dongfeng Motor Group’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Autoliv||$10.38 billion||0.64||$427.10 million||$6.58||11.55|
|Dongfeng Motor Group||$18.50 billion||0.15||$2.08 billion||$12.08||4.05|
This is a summary of recent ratings and price targets for Autoliv and Dongfeng Motor Group, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dongfeng Motor Group||0||0||0||0||N/A|
Autoliv presently has a consensus price target of $101.57, indicating a potential upside of 33.62%. Given Autoliv’s higher possible upside, equities research analysts clearly believe Autoliv is more favorable than Dongfeng Motor Group.
Volatility & Risk
Autoliv has a beta of 1.3, meaning that its share price is 30% more volatile than the S&P 500. Comparatively, Dongfeng Motor Group has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Insider and Institutional Ownership
31.7% of Autoliv shares are owned by institutional investors. Comparatively, 0.1% of Dongfeng Motor Group shares are owned by institutional investors. 0.3% of Autoliv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Autoliv pays an annual dividend of $2.48 per share and has a dividend yield of 3.3%. Dongfeng Motor Group pays an annual dividend of $1.22 per share and has a dividend yield of 2.5%. Autoliv pays out 37.7% of its earnings in the form of a dividend. Dongfeng Motor Group pays out 10.1% 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. Autoliv has raised its dividend for 9 consecutive years. Autoliv is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Autoliv and Dongfeng Motor Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dongfeng Motor Group||N/A||N/A||N/A|
Autoliv beats Dongfeng Motor Group on 12 of the 16 factors compared between the two stocks.
Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. The company operates through two segments, Passive Safety and Electronics. It offers modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, battery cable cutters, pedestrian protection systems, and child seats. The company also provides restraint control electronics and crash sensors for deployment of airbags and seatbelt pretensioners; active safety sensors and software for advanced driver assistance systems and autonomous driving solutions; and brake control systems. It primarily serves car manufacturers. The company was founded in 1953 and is headquartered in Stockholm, Sweden.
About Dongfeng Motor Group
Dongfeng Motor Group Company Limited manufactures and sells commercial vehicles, passenger vehicles, and auto engines and parts in the People's Republic of China. The company operates through four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. It provides commercial vehicles, including trucks and buses; passenger vehicles comprising basic passenger cars, MPVs, and SUVs; and electric vehicles, off-road vehicles, and special commercial vehicles. The company also engages in other automotive-related businesses, including the manufacture of vehicle manufacturing equipment; import/export businesses; and finance, insurance agency, and used car businesses. In addition, it is involved in the marketing and sale of automobiles; and key assembly other automotive-related businesses. The company was founded in 1969 and is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited is a subsidiary of Dongfeng Motor Corporation.
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