Critical Review: Schaeffler (SCFLF) and Its Rivals

Schaeffler (OTCMKTS:SCFLF) is one of 71 public companies in the “AUTO/TRUCK – ORIG” industry, but how does it compare to its rivals? We will compare Schaeffler to related companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, profitability, dividends and risk.

Valuation & Earnings

This table compares Schaeffler and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Schaeffler	$19.68 billion	-$683.89 million	20.00
Schaeffler Competitors	$6.66 billion	$184.37 million	11.68

Schaeffler has higher revenue, but lower earnings than its rivals. Schaeffler is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Schaeffler and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Schaeffler	-3.88%	-0.39%	-0.08%
Schaeffler Competitors	-1,305.32%	-136.76%	-5.83%

Insider & Institutional Ownership

66.2% of shares of all “AUTO/TRUCK – ORIG” companies are held by institutional investors. 8.4% of shares of all “AUTO/TRUCK – ORIG” companies are held by 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 summary of current ratings and recommmendations for Schaeffler and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Schaeffler	0	1	0	0	2.00
Schaeffler Competitors	556	3128	4405	195	2.51

As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 22.35%. Given Schaeffler’s rivals stronger consensus rating and higher possible upside, analysts plainly believe Schaeffler has less favorable growth aspects than its rivals.

Summary

Schaeffler rivals beat Schaeffler on 7 of the 11 factors compared.

About Schaeffler

Schaeffler AG, together with its subsidiaries, develops, manufactures, and sells components and system for industrial applications in Europe, the Americas, China, and the Asia Pacific. The Automotive Technologies division offers mechanical, mechatronic, and electronic components and systems for powertrain electrification used in passenger cars and commercial vehicles, such as electric motors, axle transmissions, axle drives, power electronics, hybrid modules, electromechanical and hydraulic actuators, and thermal management module; torque converters, hybrid dampers, clutches, variable valve train systems, valve-lash adjustment elements, balancer shafts, camshaft phasing systems, timing drives, and front end auxillary drives. This division provides rolling bearing application and products, such as wheel, ball, and needle roller bearings; and mechanical components and mechatronic systems for steering and other chassis applications, including Space Drive, a steer-by-wire system. The Automotive Aftermarket division offers components and repair solutions for light commercial vehicles, trucks and buses, and offroad sectors under the LuK, INA, and FAG brand names, as well as service for repair shops under the REPXPERT brand. The Industrial division develops and manufactures rotary and linear bearing solutions, drive technology components and systems, and service solutions, such as sensor-based condition monitoring systems. This division serves customers in the wind, raw materials, aerospace, rail, offroad, two wheelers, power transmission, and industrial automation sectors. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.