Contrasting Mobileye Global (NASDAQ:MBLY) & Denso (OTCMKTS:DNZOY)

Mobileye Global (NASDAQ:MBLY) and Denso (OTCMKTS:DNZOY) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Institutional and Insider Ownership

13.3% of Mobileye Global shares are owned by institutional investors. 2.8% of Mobileye Global shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Mobileye Global and Denso, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	1	14	10	1	2.42
Denso	0	1	0	0	2.00

Mobileye Global presently has a consensus target price of $19.50, indicating a potential upside of 21.04%. Given Mobileye Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Mobileye Global is more favorable than Denso.

Profitability

This table compares Mobileye Global and Denso’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-160.50%	0.54%	0.52%
Denso	5.85%	7.73%	4.96%

Volatility & Risk

Mobileye Global has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Denso has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.

Valuation & Earnings

This table compares Mobileye Global and Denso”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobileye Global	$1.65 billion	7.91	-$3.09 billion	($3.68)	-4.38
Denso	$47.03 billion	0.83	$2.77 billion	$0.96	13.93

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

Summary

Denso beats Mobileye Global on 8 of the 15 factors compared between the two stocks.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.