Critical Analysis: Delphi Automotive PLC (DLPH) & Superior Industries International (SUP)

Delphi Automotive PLC (NYSE: DLPH) and Superior Industries International (NYSE:SUP) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Delphi Automotive PLC and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Delphi Automotive PLC 7.51% 60.14% 14.35%
Superior Industries International 1.23% 9.54% 5.01%

Analyst Recommendations

This is a summary of recent recommendations for Delphi Automotive PLC and Superior Industries International, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Delphi Automotive PLC 1 3 14 0 2.72
Superior Industries International 0 1 2 0 2.67

Delphi Automotive PLC currently has a consensus target price of $103.59, suggesting a potential upside of 4.37%. Superior Industries International has a consensus target price of $24.67, suggesting a potential upside of 45.53%. Given Superior Industries International’s higher probable upside, analysts clearly believe Superior Industries International is more favorable than Delphi Automotive PLC.

Earnings and Valuation

This table compares Delphi Automotive PLC and Superior Industries International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Delphi Automotive PLC $17.01 billion 1.56 $3.06 billion $4.72 21.03
Superior Industries International $778.75 million 0.54 $76.24 million $0.25 67.80

Delphi Automotive PLC has higher revenue and earnings than Superior Industries International. Delphi Automotive PLC is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Delphi Automotive PLC has a beta of 1.36, suggesting that its share price is 36% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500.

Dividends

Delphi Automotive PLC pays an annual dividend of $1.16 per share and has a dividend yield of 1.2%. Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.1%. Delphi Automotive PLC pays out 24.6% of its earnings in the form of a dividend. Superior Industries International pays out 144.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

90.1% of Delphi Automotive PLC shares are owned by institutional investors. Comparatively, 82.2% of Superior Industries International shares are owned by institutional investors. 0.3% of Delphi Automotive PLC shares are owned by company insiders. Comparatively, 1.5% of Superior Industries International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Delphi Automotive PLC beats Superior Industries International on 12 of the 16 factors compared between the two stocks.

About Delphi Automotive PLC

Delphi Automotive PLC is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic, powertrain and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, Powertrain Systems, and Electronics and Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Powertrain Systems segment offers products for engine management systems (EMS). The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

About Superior Industries International

Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.

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