Allison Transmission (NYSE:ALSN) and Tenneco (NYSE:TEN) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
Analyst Recommendations
This is a breakdown of recent recommendations for Allison Transmission and Tenneco, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Allison Transmission | 1 | 4 | 2 | 1 | 2.38 |
Tenneco | 1 | 3 | 2 | 0 | 2.17 |
Allison Transmission presently has a consensus target price of $44.50, indicating a potential upside of 0.41%. Tenneco has a consensus target price of $9.6667, indicating a potential downside of 9.99%. Given Allison Transmission's stronger consensus rating and higher probable upside, equities research analysts clearly believe Allison Transmission is more favorable than Tenneco.
Valuation and Earnings
This table compares Allison Transmission and Tenneco's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Allison Transmission | $2.70 billion | 1.83 | $604 million | $4.86 | 9.12 |
Tenneco | $17.45 billion | 0.05 | $-334,000,000.00 | $3.22 | 3.34 |
Allison Transmission has higher earnings, but lower revenue than Tenneco. Tenneco is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Allison Transmission and Tenneco's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Allison Transmission | 16.00% | 46.60% | 7.57% |
Tenneco | -13.32% | -24.05% | -1.22% |
Institutional & Insider Ownership
98.0% of Allison Transmission shares are owned by institutional investors. Comparatively, 66.3% of Tenneco shares are owned by institutional investors. 1.1% of Allison Transmission shares are owned by insiders. Comparatively, 2.3% of Tenneco shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Risk & Volatility
Allison Transmission has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Tenneco has a beta of 2.68, indicating that its stock price is 168% more volatile than the S&P 500.
Summary
Allison Transmission beats Tenneco on 11 of the 14 factors compared between the two stocks.