Knorr-Bremse (OTCMKTS:KNRRY) & Forvia (OTCMKTS:FURCF) Critical Survey

Forvia (OTCMKTS:FURCF – Get Free Report) and Knorr-Bremse (OTCMKTS:KNRRY – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Forvia and Knorr-Bremse, as reported by MarketBeat.

Institutional and Insider Ownership

28.1% of Forvia shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Forvia and Knorr-Bremse”s gross revenue, earnings per share and valuation.

Knorr-Bremse has higher revenue and earnings than Forvia. Forvia is trading at a lower price-to-earnings ratio than Knorr-Bremse, indicating that it is currently the more affordable of the two stocks.

Dividends

Forvia pays an annual dividend of $0.30 per share and has a dividend yield of 2.6%. Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.1%. Forvia pays out 25.1% of its earnings in the form of a dividend. Knorr-Bremse pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Forvia is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Forvia and Knorr-Bremse’s net margins, return on equity and return on assets.

About Forvia

(Get Free Report)

Forvia SE, together with its subsidiaries, manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally. It operates through Seating, Clean Mobility, Electronics, Lighting, and Lifecycle Solutions segments. The Seating segment designs and manufactures vehicle seats, seating frames, and comfort solutions, as well as adjustment mechanisms. The Clean Mobility segment designs and manufactures exhaust systems, solutions for fuel cell electric vehicles, and aftertreatment solutions for commercial vehicles. The Electronics segment designs and manufactures display technologies, driver assistance systems, and cockpit electronics, including HELLA electronics and Clarion electronics The Lighting segment designs and manufactures lighting technologies. The Lifecycle Solutions segment provides solutions extending the vehicle lifecycle, as well as workshop equipment and special original equipment. The company also offers actuators, and electrification and energy management solutions as well as zero-emissions solutions. The company was formerly known as Faurecia S.E. and changed its name to Forvia SE in June 2023. Forvia SE was incorporated in 1929 and is headquartered in Nanterre, France.\

About Knorr-Bremse

(Get Free Report)

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.