Veoneer (NYSE:VNE) vs. Dorman Products (NYSE:DORM) Financial Analysis

Veoneer (NYSE:VNE) and Dorman Products (NASDAQ:DORM) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, valuation, dividends, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares Veoneer and Dorman Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Veoneer -22.11% -23.18% -16.67%
Dorman Products 11.28% 16.36% 12.99%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Veoneer and Dorman Products, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Veoneer 4 9 4 0 2.00
Dorman Products 0 2 0 0 2.00

Veoneer presently has a consensus price target of $34.08, suggesting a potential upside of 118.48%. Dorman Products has a consensus price target of $16.00, suggesting a potential downside of 78.24%. Given Veoneer’s higher possible upside, equities research analysts plainly believe Veoneer is more favorable than Dorman Products.

Institutional & Insider Ownership

25.6% of Veoneer shares are held by institutional investors. Comparatively, 81.3% of Dorman Products shares are held by institutional investors. 0.3% of Veoneer shares are held by company insiders. Comparatively, 11.1% of Dorman Products shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Veoneer and Dorman Products’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Veoneer $2.23 billion 0.78 -$275.00 million ($3.17) -4.92
Dorman Products $973.71 million 2.48 $133.60 million $4.20 17.51

Dorman Products has lower revenue, but higher earnings than Veoneer. Veoneer is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.

Summary

Dorman Products beats Veoneer on 8 of the 11 factors compared between the two stocks.

About Veoneer

Veoneer, Inc. designs, develops, manufactures, and sells automotive safety electronic products in Asia, the Americas, and Europe. It operates in two segments, Electronics and Brake Systems. The company provides automotive radars, night driving assist systems, positioning systems, advanced driver assistance systems (ADAS), night vision systems, brake control systems, electronic control units, active safety sensors, and controllers; mono-and stereo-vision cameras; and passive safety electronics, such as airbag control units and crash sensors. It also offers ADAS software for highly automated driving (HAD) and autonomous driving (AD) solutions; and driver monitoring systems, LiDAR sensors, RoadScape positioning systems, and other technologies for HAD and AD solutions. Veoneer, Inc. is headquartered in Stockholm, Sweden.

About Dorman Products

Dorman Products, Inc. supplies automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, the Middle East, and Australia. It offers original equipment dealer products, such as intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, and complex electronics modules; fluid reservoirs, variable valve timing components, complex electronics, and integrated door lock actuators; and fasteners, including oil drain plugs, wheel bolts, and wheel lug nuts. The company also provides automotive replacement parts comprising door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles comprising lighting, cooling, engine management, and cab products. In addition, it offers solutions for rugged duty and fleet applications; replacement chassis part solutions; brake hardware products; electrical components; and application specific repair hardware products. The company provides its products under the OE Solutions, HELP!, HD Solutions, Premium Chassis, Premium, Premium RD, MAS, FirstStop, ConductTite, and AutoGrade brands through automotive aftermarket retailers, local independent parts wholesalers, national general merchandise chain retailers, mass merchants, salvage yards, and the parts distribution systems of parts manufacturers. Dorman Products, Inc. was founded in 1978 and is headquartered in Colmar, Pennsylvania.

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