Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCMKTS:MGDDF) & Autoliv (NYSE:ALV) Critical Review

Autoliv (NYSE:ALV) and Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCMKTS:MGDDF) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.

Dividends

Autoliv pays an annual dividend of $3.48 per share and has a dividend yield of 2.8%. Compagnie Générale des Établissements Michelin Société en commandite par actions pays an annual dividend of $2.50 per share and has a dividend yield of 6.1%. Autoliv pays out 41.0% of its earnings in the form of a dividend. Compagnie Générale des Établissements Michelin Société en commandite par actions pays out 39.1% 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. Autoliv has raised its dividend for 1 consecutive years. Compagnie Générale des Établissements Michelin Société en commandite par actions is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

69.6% of Autoliv shares are held by institutional investors. Comparatively, 33.4% of Compagnie Générale des Établissements Michelin Société en commandite par actions shares are held by institutional investors. 0.3% of Autoliv shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Autoliv and Compagnie Générale des Établissements Michelin Société en commandite par actions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoliv	0	5	8	0	2.62
Compagnie Générale des Établissements Michelin Société en commandite par actions	0	0	0	0	0.00

Autoliv currently has a consensus price target of $135.93, suggesting a potential upside of 10.48%. Given Autoliv’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Autoliv is more favorable than Compagnie Générale des Établissements Michelin Société en commandite par actions.

Valuation & Earnings

This table compares Autoliv and Compagnie Générale des Établissements Michelin Société en commandite par actions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoliv	$11.08 billion	0.81	$735.00 million	$8.49	14.49
Compagnie Générale des Établissements Michelin Société en commandite par actions	N/A	N/A	N/A	$6.40	6.45

Autoliv has higher revenue and earnings than Compagnie Générale des Établissements Michelin Société en commandite par actions. Compagnie Générale des Établissements Michelin Société en commandite par actions is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Autoliv and Compagnie Générale des Établissements Michelin Société en commandite par actions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autoliv	5.79%	29.36%	8.86%
Compagnie Générale des Établissements Michelin Société en commandite par actions	N/A	N/A	N/A

Summary

Autoliv beats Compagnie Générale des Établissements Michelin Société en commandite par actions on 12 of the 14 factors compared between the two stocks.

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.

About Compagnie Générale des Établissements Michelin Société en commandite par actions

Compagnie Générale des Établissements Michelin SCA engages in the manufacture, distribution and sale of tires. Its products and services include tires, mobility services, lifestyle products, Michelin solutions and Michelin engineering and services. The company operates through the following segments: Passenger car and Light truck tires and related distribution, Truck tires and related distribution, and Specialty businesses. The company was founded by Aristide Barbier and Édouard Daubrée on July 15, 1863 and is headquartered in Clermont-Ferrand, France.