Strattec Security (NASDAQ:STRT) and Tenneco (NYSE:TEN) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, risk, profitability and valuation.
This table compares Strattec Security and Tenneco’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Strattec Security and Tenneco, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Tenneco has a consensus price target of $45.00, indicating a potential upside of 68.48%. Given Tenneco’s higher possible upside, analysts plainly believe Tenneco is more favorable than Strattec Security.
Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 3.7%. Tenneco pays out 15.9% of its earnings in the form of a dividend.
Volatility and Risk
Strattec Security has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Tenneco has a beta of 2.04, indicating that its share price is 104% more volatile than the S&P 500.
Earnings & Valuation
This table compares Strattec Security and Tenneco’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Strattec Security||$439.20 million||0.24||$12.28 million||N/A||N/A|
|Tenneco||$11.76 billion||0.13||$55.00 million||$6.28||4.25|
Tenneco has higher revenue and earnings than Strattec Security.
Institutional & Insider Ownership
77.8% of Strattec Security shares are held by institutional investors. Comparatively, 87.5% of Tenneco shares are held by institutional investors. 7.1% of Strattec Security shares are held by insiders. Comparatively, 3.0% of Tenneco shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Tenneco beats Strattec Security on 9 of the 13 factors compared between the two stocks.
About Strattec Security
Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products under the VAST brand primarily in the United States. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles, and related products. It also provides full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products Canada, Mexico, Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.
Tenneco Inc. designs, manufactures, and distributes clean air and ride performance products and systems for light vehicle, commercial truck, off-highway, and other vehicle applications worldwide. The company offers various vehicle emission control products and systems, including catalytic converters and diesel oxidation catalysts, diesel particulate filters, burner systems, lean nitrogen oxide (NOx) traps, hydrocarbon vaporizers and injectors, selective catalytic reduction (SCR) systems, SCR-coated diesel particulate filters systems, urea dosing systems, four-way catalysts, alternative NOx reduction technologies, mufflers and resonators, fabricated exhaust manifolds, pipes, hydroformed assemblies, elastomeric hangers and isolators, and after treatment control units. It also provides ride performance products and systems, such as shock absorbers; struts; vibration control components; kinetic suspension technology systems, dual-mode suspension solutions, semi-active and active suspension systems, and kinetic H2/continuously variable semi-active continuously variable semi active suspension systems; and other ride performance products comprising load assist products, springs, steering stabilizers, adjustable suspension systems, suspension kits, and modular assemblies. The company offers its products to original equipment vehicle designers and manufacturers, and repair and replacement markets under the Monroe, Kinetic, Fric-Rot, Gas-Matic, Sensa-Trac, OESpectrum, Quick-Strut, Walker, Fonos, XNOx, Mega-Flow, Quiet-Flow, Tru-Fit, DynoMax, Thrush, Rancho, Clevite Elastomers, and Axios brand names. The company was formerly known as Tenneco Automotive Inc. and changed its name to Tenneco Inc. in 2005. Tenneco Inc. was founded in 1987 and is headquartered in Lake Forest, Illinois.
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