Critical Analysis: Mobileye Global (NASDAQ:MBLY) versus Valeo (OTCMKTS:VLEEY)

Mobileye Global (NASDAQ:MBLY) and Valeo (OTCMKTS:VLEEY) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Insider & Institutional Ownership

13.3% of Mobileye Global shares are held by institutional investors. Comparatively, 0.0% of Valeo shares are held by institutional investors. 1.8% of Mobileye Global shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Mobileye Global has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Valeo has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.

Earnings & Valuation

This table compares Mobileye Global and Valeo”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobileye Global	$1.65 billion	6.59	-$3.09 billion	($0.42)	-31.83
Valeo	$23.26 billion	0.14	$175.30 million	N/A	N/A

Valeo has higher revenue and earnings than Mobileye Global.

Profitability

This table compares Mobileye Global and Valeo’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-17.34%	0.68%	0.66%
Valeo	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Mobileye Global and Valeo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	2	8	9	1	2.45
Valeo	0	5	1	1	2.43

Mobileye Global presently has a consensus price target of $18.59, indicating a potential upside of 39.03%. Given Mobileye Global’s stronger consensus rating and higher possible upside, equities analysts clearly believe Mobileye Global is more favorable than Valeo.

Summary

Mobileye Global beats Valeo on 8 of the 12 factors compared between the two stocks.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.

About Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.