Head to Head Analysis: Tenneco (TEN) and Fenix Parts (FENX)

Tenneco (NYSE: TEN) and Fenix Parts (OTCMKTS:FENX) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.8%. Fenix Parts does not pay a dividend. Tenneco pays out 30.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current recommendations for Tenneco and Fenix Parts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 5 5 0 2.36
Fenix Parts 0 0 0 0 N/A

Tenneco presently has a consensus target price of $67.70, indicating a potential upside of 22.40%. Given Tenneco’s higher probable upside, analysts clearly believe Tenneco is more favorable than Fenix Parts.

Risk & Volatility

Tenneco has a beta of 1.92, indicating that its stock price is 92% more volatile than the S&P 500. Comparatively, Fenix Parts has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Profitability

This table compares Tenneco and Fenix Parts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenneco 1.97% 54.13% 7.77%
Fenix Parts -30.56% -66.11% -34.71%

Insider & Institutional Ownership

97.8% of Tenneco shares are held by institutional investors. Comparatively, 0.6% of Fenix Parts shares are held by institutional investors. 2.7% of Tenneco shares are held by insiders. Comparatively, 16.6% of Fenix Parts shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Tenneco and Fenix Parts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Tenneco $8.60 billion 0.33 $363.00 million $3.31 16.71
Fenix Parts $132.10 million 0.07 -$42.86 million ($2.03) -0.21

Tenneco has higher revenue and earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Tenneco, indicating that it is currently the more affordable of the two stocks.

Summary

Tenneco beats Fenix Parts on 12 of the 14 factors compared between the two stocks.

Tenneco Company Profile

Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.

Fenix Parts Company Profile

Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.

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