Critical Contrast: Continental (OTCMKTS:CTTAY) vs. Halfords Group (OTCMKTS:HLFDY)

Continental (OTCMKTS:CTTAY) and Halfords Group (OTCMKTS:HLFDY) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Valuation and Earnings

This table compares Continental and Halfords Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Continental	$42.98 billion	0.31	$1.26 billion	$0.87	7.74
Halfords Group	$2.19 billion	0.19	-$42.87 million	N/A	N/A

Continental has higher revenue and earnings than Halfords Group.

Insider and Institutional Ownership

0.0% of Continental shares are owned by institutional investors. 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.

Risk and Volatility

Continental has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Halfords Group has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Profitability

This table compares Continental and Halfords Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Continental	4.54%	13.20%	4.34%
Halfords Group	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Continental and Halfords Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental	0	3	2	1	2.67
Halfords Group	0	0	0	0	0.00

Dividends

Continental pays an annual dividend of $0.20 per share and has a dividend yield of 3.0%. Halfords Group pays an annual dividend of $0.25 per share and has a dividend yield of 6.5%. Continental pays out 23.0% of its earnings in the form of a dividend.

Summary

Continental beats Halfords Group on 11 of the 13 factors compared between the two stocks.

About Continental

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; display and operating technologies; 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, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

About Halfords Group

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. The company operates through two segments, Retail and Car Servicing. The Retail segment is involved in the retail of automotive, leisure, cycling products and accessories, auto parts, and accessories through its stores and online. The Car Servicing segment provides car servicing and repair services from garages and mobile vans. The company also provides software as a service. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.