Schaeffler (OTCMKTS: SCFLF) and Fox Factory (NASDAQ:FOXF) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.
Valuation & Earnings
This table compares Schaeffler and Fox Factory’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fox Factory||$475.63 million||2.75||$43.12 million||$1.10||31.55|
Institutional & Insider Ownership
97.5% of Fox Factory shares are owned by institutional investors. 21.4% of Fox Factory shares are owned by company 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 is a breakdown of current ratings for Schaeffler and Fox Factory, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Fox Factory has a consensus price target of $39.80, indicating a potential upside of 14.70%. Given Fox Factory’s higher probable upside, analysts plainly believe Fox Factory is more favorable than Schaeffler.
This table compares Schaeffler and Fox Factory’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Fox Factory beats Schaeffler on 8 of the 9 factors compared between the two stocks.
Schaeffler AG manufactures and sells precision components and systems for automotive and industrial industries in Germany and internationally. Its Automotive segment offers components and systems for engines, such as rolling bearing solutions, products for belt and chain drives, valve train components, and systems for variable valve trains; transmissions, including torsion and vibration dampers, clutches and double clutch systems, torque converters, CVT components, bearing solutions, and synchronizing and gearshift components; and chassis components comprising wheel bearings, bearing solutions, steering components, electromechanical actuators for roll stabilizers, and power-assisted steering systems. This segment also provides hybrid and electrical drive systems, such as hybrid modules, electrical axle drives, and electrical wheel hub drives; replacement parts; training courses; and advisory services through its repair hotline or online workshop portal, as well as develops specialized tools. The company?s Industrial segment offers rolling and plain bearings, linear technology, maintenance products, monitoring systems, and direct drive technology for production machinery, drive technology, wind power, construction machinery/tractors, consumer goods, heavy industries, rail traffic, and power transmission sectors. This segment also provides replacement parts; and systems for condition monitoring, as well as performs remote monitoring for its customers. The company offers its products under the INA, LuK, FAG, and Ruville, brands. Schaeffler AG has a strategic partnership with Fraunhofer. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.
About Fox Factory
Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.
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