Contrasting XPEL (NASDAQ:XPEL) & Visteon (NASDAQ:VC)

by · The Markets Daily

Visteon (NASDAQ:VCGet Free Report) and XPEL (NASDAQ:XPELGet Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Visteon and XPEL, as reported by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Visteon06802.57
XPEL11001.50

Visteon presently has a consensus price target of $122.25, indicating a potential upside of 33.78%. Given Visteon’s stronger consensus rating and higher probable upside, equities analysts clearly believe Visteon is more favorable than XPEL.

Insider and Institutional Ownership

99.7% of Visteon shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 2.0% of Visteon shares are owned by company insiders. Comparatively, 9.5% of XPEL shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Visteon and XPEL”s revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Visteon$3.77 billion0.65$201.00 million$9.439.69
XPEL$476.20 million2.56$51.23 million$1.8523.87

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

Volatility and Risk

Visteon has a beta of 1.15, suggesting that its share price is 15% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.23, suggesting that its share price is 23% more volatile than the S&P 500.

Profitability

This table compares Visteon and XPEL’s net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Visteon6.93%17.94%8.54%
XPEL10.76%19.51%14.81%

About Visteon

(Get Free Report)

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 XPEL

(Get Free Report)

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.