Knorr-Bremse (OTCMKTS:KNRRY – Get Free Report) and Forvia (OTCMKTS:FURCF – Get Free Report) are both consumer cyclical companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
Earnings and Valuation
This table compares Knorr-Bremse and Forvia”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Knorr-Bremse | $8.84 billion | 2.18 | $604.17 million | $0.28 | 106.82 |
| Forvia | N/A | N/A | N/A | $1.20 | 9.66 |
Profitability
This table compares Knorr-Bremse and Forvia’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Knorr-Bremse | N/A | N/A | N/A |
| Forvia | N/A | N/A | N/A |
Institutional and Insider Ownership
28.1% of Forvia shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Dividends
Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Forvia pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Knorr-Bremse pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Forvia pays out 25.1% of its earnings in the form of a dividend. Forvia is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Ratings
This is a summary of recent recommendations for Knorr-Bremse and Forvia, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Knorr-Bremse | 1 | 2 | 5 | 0 | 2.50 |
| Forvia | 1 | 1 | 2 | 0 | 2.25 |
About Knorr-Bremse
Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.
About Forvia
Forvia SE, together with its subsidiaries, manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally. It operates through Seating, Clean Mobility, Electronics, Lighting, and Lifecycle Solutions segments. The Seating segment designs and manufactures vehicle seats, seating frames, and comfort solutions, as well as adjustment mechanisms. The Clean Mobility segment designs and manufactures exhaust systems, solutions for fuel cell electric vehicles, and aftertreatment solutions for commercial vehicles. The Electronics segment designs and manufactures display technologies, driver assistance systems, and cockpit electronics, including HELLA electronics and Clarion electronics The Lighting segment designs and manufactures lighting technologies. The Lifecycle Solutions segment provides solutions extending the vehicle lifecycle, as well as workshop equipment and special original equipment. The company also offers actuators, and electrification and energy management solutions as well as zero-emissions solutions. The company was formerly known as Faurecia S.E. and changed its name to Forvia SE in June 2023. Forvia SE was incorporated in 1929 and is headquartered in Nanterre, France.\
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