Critical Analysis: GUD (GUDHF) & Its Peers

GUD (OTCMKTS:GUDHF) is one of 94 public companies in the “Auto Parts” industry, but how does it contrast to its rivals? We will compare GUD to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Valuation and Earnings

This table compares GUD and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
GUD	N/A	N/A	14.55
GUD Competitors	$3.16 billion	$120.38 million	212.74

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

Profitability

This table compares GUD and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GUD	N/A	N/A	N/A
GUD Competitors	-8.09%	-12.82%	1.20%

Analyst Ratings

This is a breakdown of current recommendations and price targets for GUD and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GUD	0	0	0	0	N/A
GUD Competitors	327	1262	1803	15	2.44

As a group, “Auto Parts” companies have a potential upside of 8.87%. Given GUD’s rivals higher probable upside, analysts plainly believe GUD has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

16.5% of GUD shares are owned by institutional investors. Comparatively, 28.3% of shares of all “Auto Parts” companies are owned by institutional investors. 37.8% of shares of all “Auto Parts” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

GUD pays an annual dividend of C$0.36 per share and has a dividend yield of 5.9%. GUD pays out 85.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Auto Parts” companies pay a dividend yield of 120.8% and pay out 29.6% of their earnings in the form of a dividend. GUD lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Summary

GUD rivals beat GUD on 8 of the 10 factors compared.

About GUD

GUD Holdings Limited, through its subsidiaries, engages in the manufacture and importation, distribution, and sale of automotive products, pumps, pool and spa systems, and water pressure systems in Australia, New Zealand, Thailand, South Korea, France, and the United States. It operates through Automotive, Auto Pacific Group, and Davey segments. The Automotive segment offers automotive and heavy-duty filters for cars, trucks, and agricultural and mining equipment; and fuel pumps and associated products for the automotive after-market. The Auto Pacific Group segment manufactures and markets towing, trailering, functional accessories, and associated products for the automotive aftermarket and original equipment manufacturer customers. The Davey segment provides pumps and pressure systems for household and farm water; water transfer pumps; swimming pool products; spa bath controllers; and pumps and water purification equipment. The company was incorporated in 1958 and is based in Altona North, Australia.