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How Does Visteon Compare to Its Peers?


Nov. 6 2015, Updated 1:03 p.m. ET

Visteon and its peers

In this article, we’ll compare Visteon (VC) to its industry peers. The PE (or price-to-earnings) ratios of Visteon, Delphi Automotive (DLPH), Magna International (MGA), Harman International Industries (HAR), and Lear Corporation (LEA) are 76.9x, 19.1x, 10.1x, 22.7x, and 12.6x, respectively.

The PBV (or price-to-book value) ratios of Visteon, Delphi, Magna, Harman, and Lear are 1.8x, 9.6x, 2.1x, 3.4x, and 3.3x, respectively. Meanwhile, the price-to-sales ratios of Visteon, Delphi, Magna, Harman, and Lear are 0.82x, 1.5x, 0.56x, 1.2x, and 0.52x, respectively.

According to the ratios above, peers outperformed Visteon based on the PBV ratio. However, Visteon is ahead of its peers based on the PE ratio.

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ETFs that invest in Visteon

The First Trust Consumer Discretionary AlphaDEX ETF (FXD) invests 1.4% of its holdings in Visteon. Also, the Columbia Large Cap Growth ETF (RPX) invests 0.81% of its holdings in Visteon. The ETF primarily seeks to invest in US firms with above-average earnings growth expectations. The actively managed fund uses fundamental and quantitative analysis to select and weight its stocks.

The PowerShares Russell Midcap Pure Value ETF (PXMV) invests 0.42% of its holdings in Visteon. The ETF tracks an index of US value stocks, and the stocks are selected and weighted by the price-to-book value ratio, historical sales growth, and growth forecast.

The Vanguard Small-Cap Value ETF (VBR) invests 0.28% of its holdings in Visteon. The ETF aims to tracks the CRSP US Small Cap Value Index. The index selects from a list of stocks in the 85%–99% range of market cap, based on five value factors.

Comparison with ETFs

An analysis of Visteon and its ETFs reveals the following:

  • The year-to-date price movements of Visteon, FXD, RPX, VBR, and PXMV are 6.5%, 0.66%, 10.4%, 0.43%, and -3.1%, respectively.
  • The PE ratios of Visteon, FXD, RPX, VBR, and PXMV are 76.9x, 16.1x, 24.7x, 44.3x, and 27.9x, respectively.
  • The PBV ratios of Visteon, FXD, RPX, VBR, and PXMV are 1.8x, 3.7x, 4.2x, 1.2x, and 1.1x, respectively.

Thus, Visteon outperformed its ETFs based on price movement and the PE ratio.


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