Horizon Global (NYSE: HZN) and Gentherm (NASDAQ:THRM) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, risk, profitability and institutional ownership.
Institutional and Insider Ownership
90.8% of Horizon Global shares are held by institutional investors. Comparatively, 99.3% of Gentherm shares are held by institutional investors. 1.3% of Horizon Global shares are held by company insiders. Comparatively, 2.3% of Gentherm shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a summary of recent ratings and target prices for Horizon Global and Gentherm, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Horizon Global currently has a consensus target price of $20.20, suggesting a potential upside of 51.31%. Gentherm has a consensus target price of $40.17, suggesting a potential upside of 21.90%. Given Horizon Global’s higher possible upside, equities research analysts plainly believe Horizon Global is more favorable than Gentherm.
Valuation & Earnings
This table compares Horizon Global and Gentherm’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horizon Global||$649.20 million||0.51||-$12.36 million||($0.43)||-31.05|
|Gentherm||$917.60 million||1.32||$76.59 million||$1.81||18.20|
Gentherm has higher revenue and earnings than Horizon Global. Horizon Global is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
This table compares Horizon Global and Gentherm’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gentherm beats Horizon Global on 11 of the 13 factors compared between the two stocks.
Horizon Global Company Profile
Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.
Gentherm Company Profile
Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.
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