Critical Contrast: Miller Industries (NYSE:MLR) and Autoliv (NYSE:ALV)

Miller Industries (NYSE:MLR) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Dividends

Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. Autoliv pays an annual dividend of $3.48 per share and has a dividend yield of 2.8%. Miller Industries pays out 62.7% of its earnings in the form of a dividend. Autoliv pays out 37.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Miller Industries has increased its dividend for 2 consecutive years and Autoliv has increased its dividend for 1 consecutive years. Autoliv is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation & Earnings

This table compares Miller Industries and Autoliv”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$790.27 million	0.67	$23.01 million	$1.34	34.76
Autoliv	$10.82 billion	0.85	$735.00 million	$9.30	13.20

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

Institutional & Insider Ownership

79.2% of Miller Industries shares are held by institutional investors. Comparatively, 69.6% of Autoliv shares are held by institutional investors. 4.5% of Miller Industries shares are held by company insiders. Comparatively, 0.3% of Autoliv shares are held by company 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 breakdown of recent ratings and recommmendations for Miller Industries and Autoliv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
Autoliv	0	5	8	0	2.62

Miller Industries presently has a consensus price target of $50.00, suggesting a potential upside of 7.34%. Autoliv has a consensus price target of $135.00, suggesting a potential upside of 9.94%. Given Autoliv’s stronger consensus rating and higher possible upside, analysts plainly believe Autoliv is more favorable than Miller Industries.

Risk and Volatility

Miller Industries has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500.

Profitability

This table compares Miller Industries and Autoliv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Miller Industries	2.08%	3.70%	2.58%
Autoliv	6.45%	29.03%	8.75%

Summary

Autoliv beats Miller Industries on 13 of the 17 factors compared between the two stocks.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.