Head to Head Contrast: Visteon Corporation (VC) & Lear Corporation (LEA)

Visteon Corporation (NYSE: VC) and Lear Corporation (NYSE:LEA) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Risk and Volatility

Visteon Corporation has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Lear Corporation has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Valuation and Earnings

This table compares Visteon Corporation and Lear Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Visteon Corporation $3.17 billion 1.14 $335.00 million $4.19 27.67
Lear Corporation $19.29 billion 0.54 $1.97 billion $15.06 10.16

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

Profitability

This table compares Visteon Corporation and Lear Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon Corporation 4.35% 27.56% 8.67%
Lear Corporation 5.51% 32.34% 10.51%

Dividends

Lear Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 1.3%. Visteon Corporation does not pay a dividend. Lear Corporation pays out 13.3% of its earnings in the form of a dividend. Lear Corporation has raised its dividend for 6 consecutive years.

Institutional & Insider Ownership

94.3% of Lear Corporation shares are held by institutional investors. 0.2% of Visteon Corporation shares are held by company insiders. Comparatively, 0.5% of Lear Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations for Visteon Corporation and Lear Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon Corporation 0 4 7 0 2.64
Lear Corporation 3 3 4 0 2.10

Visteon Corporation currently has a consensus price target of $112.60, indicating a potential downside of 2.87%. Lear Corporation has a consensus price target of $149.30, indicating a potential downside of 2.41%. Given Lear Corporation’s higher probable upside, analysts clearly believe Lear Corporation is more favorable than Visteon Corporation.

Summary

Lear Corporation beats Visteon Corporation on 12 of the 17 factors compared between the two stocks.

Visteon Corporation Company Profile

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

Lear Corporation Company Profile

Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company’s segments include Seating and E-Systems. The Company serves the automotive and light truck market. The Seating segment consists of the design, development, engineering, just-in-time assembly and delivery of complete seat systems, as well as the design, development, engineering and manufacture of all seat components, including seat covers and surface materials, such as leather and fabric, seat structures and mechanisms, seat foam and headrests. The E-Systems segment consists of the design, development, engineering, manufacture, assembly and supply of electrical distribution systems, electronic modules and related components and software for light vehicles across the world.

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