Critical Comparison: Federal-Mogul (FDML) and Its Peers

Federal-Mogul (NASDAQ: FDML) is one of 27 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its competitors? We will compare Federal-Mogul to related businesses based on the strength of its earnings, dividends, institutional ownership, profitability, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Federal-Mogul and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal-Mogul 0 0 0 0 N/A
Federal-Mogul Competitors 167 978 1524 43 2.53

As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 1.35%. Given Federal-Mogul’s competitors higher probable upside, analysts clearly believe Federal-Mogul has less favorable growth aspects than its competitors.

Earnings & Valuation

This table compares Federal-Mogul and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Federal-Mogul N/A N/A 20.37
Federal-Mogul Competitors $5.80 billion $324.11 million 119.85

Federal-Mogul’s competitors have higher revenue and earnings than Federal-Mogul. Federal-Mogul is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

98.5% of Federal-Mogul shares are held by institutional investors. Comparatively, 68.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 82.1% of Federal-Mogul shares are held by insiders. Comparatively, 18.4% of shares of all “Auto, Truck & Motorcycle Parts” 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.

Profitability

This table compares Federal-Mogul and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal-Mogul 0.31% 16.56% 2.17%
Federal-Mogul Competitors -115.63% -37.32% -1.79%

Summary

Federal-Mogul beats its competitors on 5 of the 8 factors compared.

Federal-Mogul Company Profile

Federal-Mogul Holdings Corp, formerly Federal-Mogul Corporation, is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company serves original equipment manufacturers (OEM) and servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. As of December 31, 2012, the Company had OEM products included on more than 300 global vehicle platforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. The Company offers brands, OE replacement and premium products for all aftermarket customers.

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