Comparing Denso (OTCMKTS:DNZOY) & Cooper-Standard (NYSE:CPS)
by Michael Walen · The Markets DailyCooper-Standard (NYSE:CPS – Get Free Report) and Denso (OTCMKTS:DNZOY – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.
Analyst Ratings
This is a summary of recent ratings and target prices for Cooper-Standard and Denso, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cooper-Standard | 1 | 2 | 1 | 0 | 2.00 |
| Denso | 1 | 2 | 0 | 0 | 1.67 |
Cooper-Standard presently has a consensus price target of $48.33, indicating a potential upside of 119.63%. Given Cooper-Standard’s stronger consensus rating and higher possible upside, research analysts clearly believe Cooper-Standard is more favorable than Denso.
Volatility & Risk
Cooper-Standard has a beta of 2.05, indicating that its share price is 105% more volatile than the S&P 500. Comparatively, Denso has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cooper-Standard and Denso”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cooper-Standard | $91.38 billion | 0.00 | -$4.16 million | ($3.14) | -7.01 |
| Denso | $50.09 billion | 0.68 | $2.93 billion | $1.03 | 11.30 |
Denso has lower revenue, but higher earnings than Cooper-Standard. Cooper-Standard is trading at a lower price-to-earnings ratio than Denso, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Cooper-Standard and Denso’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cooper-Standard | -2.03% | N/A | -2.31% |
| Denso | 5.59% | 7.85% | 4.96% |
Insider and Institutional Ownership
69.1% of Cooper-Standard shares are held by institutional investors. 9.2% of Cooper-Standard shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
About Cooper-Standard
Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.
About Denso
DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.