Head-To-Head Comparison: Autoliv (NYSE:ALV) versus Compagnie Générale des Établissements Michelin Société en commandite par actions (OTCMKTS:MGDDF)

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

Dividends

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 6.5%. 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 out 39.1% of its earnings in the form of a dividend. Autoliv pays out 41.0% 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 increased 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.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compagnie Générale des Établissements Michelin Société en commandite par actions	N/A	N/A	N/A	$6.40	6.02
Autoliv	$10.81 billion	0.83	$735.00 million	$8.49	14.42

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

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

Insider and Institutional Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Compagnie Générale des Établissements Michelin Société en commandite par actions and Autoliv, as reported by MarketBeat.com.

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

Autoliv has a consensus target price of $135.93, indicating a potential upside of 11.07%. Given Autoliv’s stronger consensus rating and higher possible upside, analysts plainly believe Autoliv is more favorable than Compagnie Générale des Établissements Michelin Société en commandite par actions.

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 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.

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.