Lear (NYSE:LEA) and Exco Technologies (OTCMKTS:EXCOF) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.
Earnings & Valuation
This table compares Lear and Exco Technologies’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lear||$21.15 billion||0.42||$1.15 billion||$18.22||7.78|
Lear pays an annual dividend of $3.00 per share and has a dividend yield of 2.1%. Exco Technologies does not pay a dividend. Lear pays out 16.5% of its earnings in the form of a dividend. Lear has raised its dividend for 8 consecutive years.
Insider and Institutional Ownership
89.5% of Lear shares are held by institutional investors. 0.4% of Lear shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Lear and Exco Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Lear and Exco Technologies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Lear presently has a consensus target price of $181.00, indicating a potential upside of 27.72%. Given Lear’s stronger consensus rating and higher possible upside, research analysts plainly believe Lear is more favorable than Exco Technologies.
Lear beats Exco Technologies on 11 of the 12 factors compared between the two stocks.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers worldwide. It operates in two segments, Seating and E-Systems. The Seating segment offers leather and fabric products, seat trim covers, recliner mechanisms, seat tracks and foams, seat structures and mechanisms, and headrests for automobiles and light trucks, compact cars, and sport utility vehicles; and heating and cooling systems. The E-Systems segment offers electrical distribution systems that route electrical signals and manage electrical power within the vehicle for traditional vehicle architectures, as well as high power and hybrid electric systems. This segment's products comprise wire harnesses, terminals and connectors, and junction boxes; and electronic control modules, such as body control modules, smart junction boxes, gateway and wireless control modules, lighting control modules, and audio domain controllers and amplifiers. It also provides electrification products comprising charging systems that include onboard charging modules, cord set charging equipment, and wireless charging systems; battery electronics, which comprise battery disconnect units, cell monitoring supervisory systems, and integrated total battery control modules; and other power management modules, including converter and inverter systems. In addition, this segment offers cybersecurity software; EXO advanced vehicle positioning for automated and autonomous driving applications; roadside modules that communicate real-time traffic information; and cellular protocols for vehicle connectivity, as well as Connexus connectivity products. Further, it provides wireless systems, such as passive entry, remote keyless entry, and dual range/function remote keyless entry systems. The company was founded in 1917 and is headquartered in Southfield, Michigan.
About Exco Technologies
Exco Technologies Ltd. engages in the design, development and manufacture of dies, moulds, components and assemblies, and consumable equipment for the die-cast, extrusion and automotive industries. It operates through the following segments: Casting and Extrusion, Automotive Solutions, and Corporate. The Casting and Extrusion segment designs and engineers tooling and other manufacturing equipment. The Automotive solutions segment produces automotive interior components and assemblies primarily for seating, cargo storage, and restraint for sale to automotive manufacturers and suppliers. The corporate segment refers to administrative expenses. The company was founded on July 28, 1986 and is headquartered in Markham, Canada.
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