Head to Head Comparison: Tenneco (TEN) vs. Its Competitors

Tenneco (NYSE: TEN) is one of 32 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it compare to its competitors? We will compare Tenneco to related companies based on the strength of its profitability, analyst recommendations, dividends, earnings, valuation, institutional ownership and risk.

Institutional & Insider Ownership

94.4% of Tenneco shares are held by institutional investors. Comparatively, 67.9% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 2.7% of Tenneco shares are held by insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Tenneco has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Tenneco’s competitors have a beta of 1.40, suggesting that their average stock price is 40% more volatile than the S&P 500.

Dividends

Tenneco pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. Tenneco pays out 19.7% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Tenneco is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for Tenneco and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tenneco 1 4 4 0 2.33
Tenneco Competitors 144 892 1425 37 2.54

Tenneco currently has a consensus target price of $66.63, indicating a potential upside of 8.33%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 3.10%. Given Tenneco’s higher possible upside, research analysts plainly believe Tenneco is more favorable than its competitors.

Earnings and Valuation

This table compares Tenneco and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Tenneco $8.86 billion $630.00 million 12.13
Tenneco Competitors $5.85 billion $698.05 million 15.44

Tenneco has higher revenue, but lower earnings than its competitors. Tenneco is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Tenneco and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tenneco 3.17% 54.06% 7.95%
Tenneco Competitors -95.27% 3.29% -1.03%

Summary

Tenneco beats its competitors on 9 of the 15 factors compared.

About Tenneco

Tenneco Inc. is a producer of clean air and ride performance products and systems for light vehicle, commercial truck, off-highway and other vehicle applications. The Company designs, manufactures and distributes highly engineered products for both original equipment vehicle manufacturers (OEMs) and the repair and replacement markets, or aftermarket, across the world. The Company operates through six segments: North America Clean Air; North America Ride Performance; Europe, South America and India Clean Air; Europe, South America and India Ride Performance; Asia Pacific Clean Air, and Asia Pacific Ride Performance. The Company serves both original equipment (OE) vehicle designers and manufacturers and the repair and replacement markets, or aftermarket, globally through brands, including Monroe, Rancho, Clevite Elastomers, Axios, Kinetic and Fric-Rot ride performance products and Walker, XNOx, Fonos, DynoMax and Thrush clean air products.

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