Contrasting Federal-Mogul (FDML) and Its Peers

Federal-Mogul (NASDAQ: FDML) is one of 27 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it weigh in compared to its peers? We will compare Federal-Mogul to similar businesses based on the strength of its earnings, dividends, analyst recommendations, risk, profitability, valuation and institutional ownership.

Insider and Institutional Ownership

98.5% of Federal-Mogul shares are held by institutional investors. Comparatively, 71.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 82.1% of Federal-Mogul shares are held by company insiders. Comparatively, 15.8% of shares of all “Auto, Truck & Motorcycle Parts” companies 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.

Profitability

This table compares Federal-Mogul and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal-Mogul 0.31% 16.56% 2.17%
Federal-Mogul Competitors -115.64% -49.59% -7.23%

Analyst Ratings

This is a summary of current recommendations for Federal-Mogul and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal-Mogul 0 0 0 0 N/A
Federal-Mogul Competitors 167 978 1523 43 2.53

As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 0.49%. Given Federal-Mogul’s peers higher possible upside, analysts clearly believe Federal-Mogul has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Federal-Mogul and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Federal-Mogul N/A N/A 20.37
Federal-Mogul Competitors $5.80 billion $324.11 million 119.45

Federal-Mogul’s peers have higher revenue and earnings than Federal-Mogul. Federal-Mogul is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Federal-Mogul beats its peers on 5 of the 8 factors compared.

Federal-Mogul Company Profile

Federal-Mogul Holdings Corp, formerly Federal-Mogul Corporation, is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company serves original equipment manufacturers (OEM) and servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. As of December 31, 2012, the Company had OEM products included on more than 300 global vehicle platforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. The Company offers brands, OE replacement and premium products for all aftermarket customers.

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