Visteon (NASDAQ:VC) and Continental Aktiengesellschaft (OTCMKTS:CTTAY) Head to Head Review

Visteon (NASDAQ:VCGet Rating) and Continental Aktiengesellschaft (OTCMKTS:CTTAYGet Rating) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Visteon and Continental Aktiengesellschaft’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Visteon 1.48% 11.42% 2.79%
Continental Aktiengesellschaft 4.31% 10.18% 3.40%

Institutional and Insider Ownership

0.0% of Continental Aktiengesellschaft shares are owned by institutional investors. 1.6% of Visteon shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Visteon and Continental Aktiengesellschaft’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Visteon $2.77 billion 0.95 $41.00 million $1.44 65.66
Continental Aktiengesellschaft $39.95 billion 0.34 $1.72 billion $0.90 7.60

Continental Aktiengesellschaft has higher revenue and earnings than Visteon. Continental Aktiengesellschaft is trading at a lower price-to-earnings ratio than Visteon, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Visteon has a beta of 1.91, suggesting that its share price is 91% more volatile than the S&P 500. Comparatively, Continental Aktiengesellschaft has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Visteon and Continental Aktiengesellschaft, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Visteon 2 4 6 0 2.33
Continental Aktiengesellschaft 3 7 4 0 2.07

Visteon currently has a consensus price target of $121.50, indicating a potential upside of 28.50%. Continental Aktiengesellschaft has a consensus price target of $65.00, indicating a potential upside of 850.29%. Given Continental Aktiengesellschaft’s higher possible upside, analysts plainly believe Continental Aktiengesellschaft is more favorable than Visteon.

Summary

Visteon beats Continental Aktiengesellschaft on 8 of the 14 factors compared between the two stocks.

About Visteon (Get Rating)

Visteon Corporation, an automotive technology company, engineers, designs, and manufactures automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters to 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as 3-D, active privacy, TrueColor enhancement, cameras, optics, haptic feedback, and light effects; and Phoenix, a display audio and embedded infotainment platform, as well as onboard artificial intelligence-based voice assistant with natural language understanding. It also offers wired and wireless battery management systems; telematics control unit to enable secure connected car services, software updates, and data; and head-up displays. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; DriveCore, a platform for addressing multiple levels of vehicle automation; and body domain modules, which integrate various functions, such as central gateway, body controls, comfort, and vehicle access solutions into one device. Visteon Corporation was incorporated in 2000 and is headquartered in Van Buren, Michigan.

About Continental Aktiengesellschaft (Get Rating)

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel and specialist vehicles, bicycles, and motor vehicles, as well as digital tire monitoring and management systems. In addition, the company develops and manufactures cross-material, environmentally friendly, and intelligent products and systems for automotive, railway engineering, mining, agriculture, and other industries, as well as provides contract manufacturing services. It sells its products through 944 company owned tire outlets and approximately 5,200 franchise locations The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

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