Analyzing Visteon (VC) and Horizon Global (HZN)

Visteon (NYSE: VC) and Horizon Global (NYSE:HZN) are both cyclical consumer goods & services companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Volatility and Risk

Visteon has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Horizon Global has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Institutional & Insider Ownership

90.5% of Horizon Global shares are owned by institutional investors. 0.2% of Visteon shares are owned by insiders. Comparatively, 1.3% of Horizon Global shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Visteon and Horizon Global’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visteon $3.16 billion 1.26 $75.00 million $5.23 24.40
Horizon Global $649.20 million 0.33 -$12.36 million ($0.42) -20.14

Visteon has higher revenue and earnings than Horizon Global. Horizon Global 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 Horizon Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon 4.83% 29.13% 9.06%
Horizon Global -0.56% 16.58% 3.01%

Analyst Recommendations

This is a breakdown of current recommendations for Visteon and Horizon Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 0 6 9 0 2.60
Horizon Global 0 2 3 0 2.60

Visteon currently has a consensus price target of $134.43, suggesting a potential upside of 5.36%. Horizon Global has a consensus price target of $17.00, suggesting a potential upside of 100.95%. Given Horizon Global’s higher probable upside, analysts plainly believe Horizon Global is more favorable than Visteon.

Summary

Visteon beats Horizon Global on 10 of the 13 factors compared between the two stocks.

Visteon Company Profile

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.

Horizon Global Company Profile

Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.

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