Fox Factory (NASDAQ:FOXF) & General Motors (NYSE:GM) Critical Review

General Motors (NYSE:GM) and Fox Factory (NASDAQ:FOXF) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Volatility & Risk

General Motors has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Institutional and Insider Ownership

92.7% of General Motors shares are owned by institutional investors. 0.5% of General Motors shares are owned by company insiders. Comparatively, 0.3% of Fox Factory shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for General Motors and Fox Factory, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
General Motors	2	7	13	3	2.68
Fox Factory	2	2	3	0	2.14

General Motors presently has a consensus target price of $70.00, suggesting a potential upside of 2.93%. Fox Factory has a consensus target price of $32.40, suggesting a potential upside of 145.64%. Given Fox Factory’s higher probable upside, analysts plainly believe Fox Factory is more favorable than General Motors.

Valuation and Earnings

This table compares General Motors and Fox Factory”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
General Motors	$187.44 billion	0.34	$6.01 billion	$4.97	13.68
Fox Factory	$1.46 billion	0.38	$6.55 million	($6.18)	-2.13

General Motors has higher revenue and earnings than Fox Factory. Fox Factory is trading at a lower price-to-earnings ratio than General Motors, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares General Motors and Fox Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
General Motors	1.62%	12.29%	2.90%
Fox Factory	-17.50%	5.03%	2.56%

Summary

General Motors beats Fox Factory on 12 of the 15 factors compared between the two stocks.

About General Motors

General Motors Company designs, builds, and sells trucks, crossovers, cars, and automobile parts; and provide software-enabled services and subscriptions worldwide. The company operates through GM North America, GM International, Cruise, and GM Financial segments. It markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Baojun, and Wuling brand names. In addition, the company sells trucks, crossovers, cars, and automobile parts through retail dealers, and distributors and dealers, as well as to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies, and governments. Further, it offers range of after-sale services through dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories, and extended service warranties. Additionally, the company provides automotive financing; and software-enabled services and subscriptions. General Motors Company was founded in 1908 and is headquartered in Detroit, Michigan.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.