Comparing ATC Venture Group (OTCMKTS:ATCV) & Meritor (OTCMKTS:MTOR)

ATC Venture Group (OTCMKTS:ATCV) and Meritor (NYSE:MTOR) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, risk, institutional ownership and valuation.

Volatility & Risk

ATC Venture Group has a beta of 6.64, indicating that its stock price is 564% more volatile than the S&P 500. Comparatively, Meritor has a beta of 2.22, indicating that its stock price is 122% more volatile than the S&P 500.

Institutional & Insider Ownership

95.1% of Meritor shares are held by institutional investors. 49.9% of ATC Venture Group shares are held by insiders. Comparatively, 2.8% of Meritor shares are held by 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.

Earnings and Valuation

This table compares ATC Venture Group and Meritor’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
ATC Venture Group N/A N/A N/A N/A N/A
Meritor $4.18 billion 0.47 $117.00 million $3.03 7.81

Meritor has higher revenue and earnings than ATC Venture Group.

Profitability

This table compares ATC Venture Group and Meritor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
ATC Venture Group N/A N/A N/A
Meritor 5.86% 89.66% 11.41%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for ATC Venture Group and Meritor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
ATC Venture Group 0 0 0 0 N/A
Meritor 0 5 2 0 2.29

Meritor has a consensus price target of $25.57, suggesting a potential upside of 8.07%. Given Meritor’s higher probable upside, analysts clearly believe Meritor is more favorable than ATC Venture Group.

Summary

Meritor beats ATC Venture Group on 7 of the 9 factors compared between the two stocks.

About ATC Venture Group

ATC Venture Group Inc., through its subsidiary, Simonsen Iron Works Inc., engages in the design, manufacture, and assembly of an array of parts for original equipment manufacturers and other customers. The company was formerly known as Cycle Country Accessories Corp. and changed its name to ATC Venture Group Inc. in January 2012. ATC Venture Group Inc. is based in Minnetonka, Minnesota.

About Meritor

Meritor, Inc. designs, develops, manufactures, markets, distributes, sells, services, and supports integrated systems, modules, and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation, and industrial sectors. It operates through two segments, Commercial Truck; and Aftermarket, Industrial and Trailer. The Commercial Truck segment supplies drivetrain systems and components, including axles, drivelines, and braking and suspension systems primarily for medium-and heavy-duty trucks and other applications; and undercarriage products and systems for trailer applications. The Aftermarket, Industrial and Trailer segment supplies axles, brakes, drivelines, suspension parts, and other replacement parts to commercial vehicle and industrial aftermarket customers. It also supplies drivetrain systems and various components, such as axles, drivelines, brakes, and suspension systems for military, construction, bus and coach, fire and emergency, and other applications. The company sells its products under the Meritor, Euclid, Trucktechnic, and Mach brands primarily to OEMs and its parts marketing operations, and dealers, as well as for other independent distributors and service garages in the aftermarket industry in North America, South America, Europe, and the Asia Pacific. The company was formerly known as ArvinMeritor, Inc. and changed its name to Meritor, Inc. in March 2011. Meritor, Inc. was founded in 1921 and is headquartered in Troy, Michigan.

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