Financial Comparison: Federal Screw Works (OTCMKTS:FSCR) vs. Visteon (NASDAQ:VC)

Visteon (NASDAQ:VC) and Federal Screw Works (OTCMKTS:FSCR) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, profitability, earnings, institutional ownership, valuation and risk.

Institutional and Insider Ownership

99.7% of Visteon shares are owned by institutional investors. 2.0% of Visteon shares are owned by insiders. Comparatively, 46.2% of Federal Screw Works shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Visteon and Federal Screw Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Visteon	0	6	8	0	2.57
Federal Screw Works	0	0	0	0	0.00

Visteon currently has a consensus target price of $122.33, suggesting a potential upside of 34.92%. Given Visteon’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Visteon is more favorable than Federal Screw Works.

Profitability

This table compares Visteon and Federal Screw Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Visteon	6.93%	17.94%	8.54%
Federal Screw Works	0.99%	N/A	N/A

Earnings & Valuation

This table compares Visteon and Federal Screw Works”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Visteon	$3.77 billion	0.65	$201.00 million	$9.43	9.62
Federal Screw Works	$97.55 million	0.14	$1.62 million	$0.71	14.08

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

Volatility and Risk

Visteon has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Federal Screw Works has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Summary

Visteon beats Federal Screw Works on 12 of the 14 factors compared between the two stocks.

About Visteon

Visteon Corporation, an automotive technology company, designs, manufactures, and sells automotive electronics and connected car solutions for vehicle manufacturers worldwide. The company provides instrument clusters, including analog gauge clusters for 2-D and 3-D display-based devices; information displays that integrate a range of user interface technologies and graphics management capabilities, such as active privacy, TrueColor enhancement, local dimming, cameras, optics, haptic feedback, and light effects; and infotainment and connected car solutions, including scalable Android infotainment for seamless connectivity, as well as onboard artificial intelligence-based voice assistants with natural language understanding. It offers wired and wireless battery management systems; power electronics units; and telematics control units to enable secure connected car services, software updates, and data. In addition, the company provides SmartCore, an automotive-grade, integrated domain controller; SmartCore Runtime, a middleware enabling communication between domains and apps to be shown on any display; SmartCore Studio, a PC-based configuration tool to generate hypervisor configurations; 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 Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.