Analyzing Commercial Vehicle Group (CVGI) and Horizon Global (HZN)

Commercial Vehicle Group (NASDAQ: CVGI) and Horizon Global (NYSE:HZN) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Commercial Vehicle Group 0.94% 26.82% 5.31%
Horizon Global -5.65% 15.81% 3.19%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Commercial Vehicle Group and Horizon Global, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Commercial Vehicle Group 0 0 0 0 N/A
Horizon Global 1 3 2 0 2.17

Horizon Global has a consensus target price of $12.67, indicating a potential upside of 111.11%. Given Horizon Global’s higher possible upside, analysts clearly believe Horizon Global is more favorable than Commercial Vehicle Group.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Commercial Vehicle Group $755.23 million 0.31 -$1.70 million $0.44 17.02
Horizon Global $892.98 million 0.17 -$3.55 million $0.98 6.12

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

Institutional and Insider Ownership

73.5% of Commercial Vehicle Group shares are owned by institutional investors. Comparatively, 80.9% of Horizon Global shares are owned by institutional investors. 3.4% of Commercial Vehicle Group shares are owned by company insiders. Comparatively, 1.9% of Horizon Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Commercial Vehicle Group has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500. Comparatively, Horizon Global has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Summary

Commercial Vehicle Group beats Horizon Global on 8 of the 13 factors compared between the two stocks.

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 through two segments, the Global Truck and Bus, and the Global Construction and Agriculture. The Global Truck and Bus segment provides 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); and aftermarket seats and components. It also offers trim systems and components for the interior cabs of commercial vehicles, including vinyl or cloth-covered appliqués, armrests, map pocket compartments, carpets, 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, as well as exterior components for commercial recreational and specialty vehicles. In addition, this segment provides cab structures, sleeper boxes, body panels, structural components, bumper fascias and fender liners; and mirrors, wipers, and controls. The Global Construction and Agriculture segment provides electronic wire harness assemblies that function as current carrying devices used to provide 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. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; the medium-and heavy-construction vehicle market; and the 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.

Horizon Global Company Profile

Horizon Global Corporation designs, manufactures, and distributes a range of towing, trailering, cargo management, and other related accessory products to the automotive aftermarket, retail, and original equipment channels worldwide. It operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. The company provides towing products, such as hitches, fifth wheels, gooseneck hitches, weight distribution systems, wiring harnesses, draw bars, ball mounts, crossbars, towbars, security, and other towing accessories for attaching a trailer, camper, etc. It also offers trailering products, including brake controls, jacks, winches, couplers, interior and exterior vehicle lighting, and brake replacement parts. In addition, the company provides cargo management products, such as bike racks, roof cross bar systems, cargo carriers, luggage boxes, car interior protective products, ropes, tie-downs, tarps, bungee cords, loading ramps, and interior travel organizers. Further, it offers other products comprising tubular push and sports bars, side steps, skid plates, and oil pans. Horizon Global Corporation provides its products under the Reese, Hayman-Reese, Draw-Tite, and Westfalia, as well as Aqua Clear, Bulldog, BTM, DHF, Engetran, Fulton, Kovil, Parkside, Reese Secure, Reese Explorer, Reese Power Sports, Reese Towpower, ROLA, Tekonsha, Trojan, WesBarg, and Witter Towbar Systems brands. The company offers its products through original equipment manufacturers and suppliers, as well as aftermarket and retail customers in the agricultural, automotive, construction, fleet, horse/livestock, industrial, marine, military, recreational, trailer, and utility markets, and mining and municipalities; and serves end consumers through independent installers, warehouse distributors, dealers, original equipment, retail stores, and online retailers. Horizon Global Corporation was incorporated in 2015 is headquartered in Troy, Michigan.

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