Harman International Industries (NYSE: HAR) and Federal-Mogul (NASDAQ:FDML) are both cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, institutional ownership, risk, earnings, analyst recommendations, dividends and profitability.
Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Federal-Mogul does not pay a dividend. Harman International Industries pays out 27.7% of its earnings in the form of a dividend. Federal-Mogul has raised its dividend for 6 consecutive years.
This is a breakdown of recent ratings for Harman International Industries and Federal-Mogul, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harman International Industries||0||2||0||0||2.00|
Valuation & Earnings
This table compares Harman International Industries and Federal-Mogul’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harman International Industries||N/A||N/A||N/A||$5.06||22.04|
Federal-Mogul 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.
This table compares Harman International Industries and Federal-Mogul’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Harman International Industries||5.12%||15.69%||6.40%|
Insider & Institutional Ownership
85.8% of Harman International Industries shares are owned by institutional investors. Comparatively, 98.5% of Federal-Mogul shares are owned by institutional investors. 0.9% of Harman International Industries shares are owned by insiders. Comparatively, 82.1% of Federal-Mogul shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Federal-Mogul beats Harman International Industries on 5 of the 9 factors compared between the two stocks.
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.
Federal-Mogul Company Profile
Federal-Mogul Holdings Corp, formerly Federal-Mogul Corporation, is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company serves original equipment manufacturers (OEM) and servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. As of December 31, 2012, the Company had OEM products included on more than 300 global vehicle platforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. The Company offers brands, OE replacement and premium products for all aftermarket customers.
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