SPX (NYSE: SPXC) and General Motors (NYSE:GM) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares SPX and General Motors’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|SPX||$1.43 billion||0.94||$89.30 million||$2.02||15.47|
|General Motors||$145.59 billion||0.35||-$3.86 billion||($2.89)||-12.58|
This is a breakdown of current ratings and recommmendations for SPX and General Motors, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
SPX presently has a consensus target price of $32.00, indicating a potential upside of 2.43%. General Motors has a consensus target price of $44.57, indicating a potential upside of 22.61%. Given General Motors’ stronger consensus rating and higher probable upside, analysts plainly believe General Motors is more favorable than SPX.
This table compares SPX and General Motors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
SPX has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, General Motors has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Insider and Institutional Ownership
86.7% of SPX shares are held by institutional investors. Comparatively, 73.5% of General Motors shares are held by institutional investors. 0.6% of SPX shares are held by company insiders. Comparatively, 0.0% of General Motors shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 4.2%. SPX does not pay a dividend. General Motors pays out -52.6% of its earnings in the form of a dividend.
General Motors beats SPX on 9 of the 17 factors compared between the two stocks.
SPX Company Profile
SPX Corporation is a global supplier of infrastructure equipment. The Company operates through three segments: HVAC; Detection and Measurement, and Engineered Solutions. The HVAC solutions offered by its businesses include package cooling towers, residential and commercial boilers, heating and ventilation products. Its detection and measurement product lines encompass underground pipe and cable locators, and inspection equipment. Within its power platform, it is a manufacturer of medium and large power transformers, as well as equipment for various types of power plant, including cooling equipment, heat exchangers and pollution control systems. As of December 31, 2016, the Company had operations in approximately 15 countries.
General Motors Company Profile
General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.
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