Superior Industries International (NYSE: SUP) and Harman International Industries (NYSE:HAR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.
Insider and Institutional Ownership
88.5% of Superior Industries International shares are held by institutional investors. Comparatively, 85.8% of Harman International Industries shares are held by institutional investors. 1.5% of Superior Industries International shares are held by insiders. Comparatively, 0.9% of Harman International Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This table compares Superior Industries International and Harman International Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Superior Industries International||0.66%||7.96%||3.32%|
|Harman International Industries||5.12%||15.69%||6.40%|
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.2%. Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Superior Industries International pays out -180.0% of its earnings in the form of a dividend. Harman International Industries pays out 27.7% 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. Superior Industries International has increased its dividend for 7 consecutive years. Superior Industries International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation & Earnings
This table compares Superior Industries International and Harman International Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Superior Industries International||$732.70 million||0.55||$41.38 million||($0.20)||-80.25|
|Harman International Industries||N/A||N/A||N/A||$5.06||22.04|
Superior Industries International has higher revenue and earnings than Harman International Industries. Superior Industries International is trading at a lower price-to-earnings ratio than Harman International Industries, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Superior Industries International has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500. Comparatively, Harman International Industries has a beta of 1.55, indicating that its stock price is 55% more volatile than the S&P 500.
This is a breakdown of recent recommendations for Superior Industries International and Harman International Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Superior Industries International||0||1||3||0||2.75|
|Harman International Industries||0||0||0||0||N/A|
Superior Industries International currently has a consensus target price of $23.75, indicating a potential upside of 47.98%. Given Superior Industries International’s higher possible upside, equities research analysts plainly believe Superior Industries International is more favorable than Harman International Industries.
Superior Industries International beats Harman International Industries on 8 of the 14 factors compared between the two stocks.
Superior Industries International Company Profile
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
Harman International Industries Company Profile
Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.
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