Forvia (OTCMKTS:FURCF – Get Free Report) and ARB (OTCMKTS:ARBFF – Get Free Report) are both consumer cyclical companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.
Dividends
Forvia pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. ARB pays an annual dividend of $0.29 per share and has a dividend yield of 1.5%. Forvia pays out 25.1% of its earnings in the form of a dividend. ARB pays out 48.6% 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.
Valuation and Earnings
This table compares Forvia and ARB’s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Forvia | N/A | N/A | N/A | $1.20 | 21.74 |
| ARB | N/A | N/A | N/A | $0.59 | 32.37 |
Analyst Recommendations
This is a summary of recent recommendations for Forvia and ARB, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Forvia | 1 | 2 | 4 | 0 | 2.43 |
| ARB | 1 | 1 | 0 | 0 | 1.50 |
Forvia currently has a consensus price target of $20.40, indicating a potential downside of 21.54%. Given Forvia’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Forvia is more favorable than ARB.
Insider and Institutional Ownership
28.1% of Forvia shares are owned by institutional investors. Comparatively, 22.0% of ARB shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares Forvia and ARB’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Forvia | N/A | N/A | N/A |
| ARB | N/A | N/A | N/A |
Summary
Forvia beats ARB on 6 of the 8 factors compared between the two stocks.
About Forvia
Forvia SE, together with its subsidiaries, manufactures and sells automotive technology solutions in France, Germany, other European countries, the Americas, Asia, and internationally. It operates through Seating, Interiors, Clean Mobility, Electronics, Lighting, and Lifecycle Solutions segments. The Seating segment designs and manufactures vehicle seats, seating frames, covers, and comfort solutions, as well as adjustment mechanisms. The Interior segment designs, manufactures, and assembles instrument panels, cockpits, and door panels and modules, as well as center consoles, and sustainable materials. The Clean Mobility segment designs and manufactures exhaust system solutions for passenger and commercial vehicles; fuel cell electric vehicles; and aftertreatment solutions for commercial vehicles, as well as zero-emissions solutions. The Electronics segment designs and manufactures display technologies, driver assistance systems, and cockpit electronics, as well as sensors and actuators, lighting/body electronics, energy management, and HMI/displays. The Lighting segment designs and manufactures lighting technologies. The Lifecycle Solutions segment provides solutions extending the vehicle lifecycle, as well as workshop equipment and special original equipment. The company was formerly known as Faurecia S.E. and changed its name to Forvia SE in June 2023. Forvia SE was incorporated in 1929 and is headquartered in Nanterre, France.
About ARB
ARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The company provides bull bars, side rails and steps, canopies, UTE lids and tub accessories, roof racks, cross bars and carriers, suspension systems, driving lights, air compressors and tire accessories, air lockers, winches, recovery equipment and points, under vehicle protection products, fuel tanks and storage, drawers and cargo solutions, slide kitchen, portable fridge freezers, tents, swags and awnings, camping and touring accessories, safari snorkels, dual battery and solar systems, interior protection, and general accessories, as well as rear protection, towing, and wheel carriers. It also offers LINX, a controller that declutters the dashboard and centralizes the command of vehicle accessories by replacing classic switches, gauges, and monitors with one sleek and smart driver interface; and UHF radios, GPS, and reversing cameras. The company serves stockists, vehicle dealers, and various fleet operators. It operates approximately 74 ARB stores, which include 30 company owned stores. The company has operations in Australia, New Zealand, the United States, Thailand, the Middle East, Europe, and the United Kingdom. The company has a strategic partnership with Ford Motor Company to develop a suite of aftermarket products for the Ford Bronco. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.
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