Commercial Vehicle Group (NASDAQ:CVGI) & Visteon (NASDAQ:VC) Critical Contrast

Visteon (NASDAQ:VC) and Commercial Vehicle Group (NASDAQ:CVGI) are both auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, profitability, dividends and risk.

Valuation and Earnings

This table compares Visteon and Commercial Vehicle Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visteon $2.95 billion 1.15 $70.00 million $2.77 43.62
Commercial Vehicle Group $901.24 million 0.35 $15.78 million $0.51 19.12

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

Profitability

This table compares Visteon and Commercial Vehicle Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon -1.56% 6.97% 1.56%
Commercial Vehicle Group -5.85% -7.44% -1.80%

Volatility and Risk

Visteon has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 3.4, meaning that its stock price is 240% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Visteon and Commercial Vehicle Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 3 3 5 0 2.18
Commercial Vehicle Group 0 0 3 0 3.00

Visteon currently has a consensus price target of $109.89, suggesting a potential downside of 9.05%. Commercial Vehicle Group has a consensus price target of $7.00, suggesting a potential downside of 28.21%. Given Visteon’s higher possible upside, equities research analysts plainly believe Visteon is more favorable than Commercial Vehicle Group.

Insider & Institutional Ownership

51.9% of Commercial Vehicle Group shares are owned by institutional investors. 1.3% of Visteon shares are owned by insiders. Comparatively, 3.4% of Commercial Vehicle Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Visteon beats Commercial Vehicle Group on 9 of the 14 factors compared between the two stocks.

Visteon Company Profile

Visteon Corporation engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including standard analog gauge clusters to high-resolution, all-digital, fully reconfigurable, 2-D, and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, dual view, cameras, optics, haptic feedback, light effects, and dual displays; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence based voice assistant. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data, as well as hands-free telephone unit; and head-up displays (HUD), such as combiner HUD and windshield HUD that present critical information to the driver. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller to enhance efficiency, and reduce power consumption and cost; and DriveCore, a platform for addressing multiple levels of vehicle automation. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.

Commercial Vehicle Group Company Profile

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, engineers, produces, and sells a range of cab related products and systems in North America, Europe, and the Asia-Pacific regions. It operates in two segments, Electrical Systems and Global Seating. The Electrical Systems segment offers electrical wire harness assemblies that function as current carrying devices in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial vehicles; and panel assemblies and cabinets. It also offers trim systems and components for the interior of cabs, including vinyl or cloth-covered appliqués, armrests, map pocket compartments, and sound-reducing insulations; instrument panels; headliners/wall panels; storage systems; floor covering systems; sleeper bunks; grab handles and armrests; privacy curtains; and plastics decorating and finishing products. In addition, this segment provides cab structures and sleeper boxes; mirrors, wipers, and controls; and electro-mechanical and cable assembly manufacturing services to customers, including box builds, complex rack and stack assemblies, and multi-cabinet control cabinets with power distribution and cabling. The Global Seating segment offers seats and seating systems, such as mechanical and air suspension, static, bus, and military seats, as well as seats for medium-and heavy-duty trucks (MD/HD trucks); office seating products; and seats, parts, and components for the aftermarket. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; medium-and heavy-construction vehicle market; and military, bus, agriculture, specialty transportation, mining, industrial equipment, and off-road recreational markets. Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.

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