How Does Harman International Compare to Its ETFs and Peers?

ETFs that invest in Harman International Industries

In this article, we’ll compare Harman International Industries (HAR) with the ETFs that invest in it and with its peers. The Guggenheim S&P Equal Weight Consumer Discretionary ETF (RCD) invests 1.2% of its holdings in HAR.

The iShares Morningstar Mid-Cap Growth Index ETF (JKH) invests 0.50% of its holdings in HAR. The ETF tracks a market-cap–weighted index of mid-cap companies selected by Morningstar based on their growth characteristics.

How Does Harman International Compare to Its ETFs and Peers?

The Vanguard Mid-Cap Growth ETF (VOT) invests 0.47% of its holdings in HAR. The ETF tracks a market-cap–weighted index of mid-cap growth companies selected by the Center for Research in Security Prices.

HAR and its ETFs compared

Now let’s look at HAR compared to its ETFs as of January 5, 2016:

  • The year-to-date price movements of HAR, RCD, JKH, and VOT are 1.9%, -2.3%, -3.1%, and -1.5%, respectively.
  • The PE (price-to-earnings) ratios of HAR, RCD, JKH, and VOT are 19.8x, 16.6x, 35.1x, and 33.5x, respectively.
  • The PBV (price-to-book value) ratios of HAR, RCD, JKH, and VOT are 2.9x, 3.9x, 4.6x, and 4.6x, respectively.

According to the above findings, these ETFs have outperformed Harman International Industries based on PE and PBV. However, HAR is ahead of its ETFs based on price movement.

HAR and its peers

Now we’ll compare HAR to its industry peers. First, let’s compare HAR and its peers based on PE ratio:

  • HAR — 19.8x
  • Apple (AAPL) — 11.2x
  • Sony (SNE) — 36.9x

Now let’s look at PBV ratios:

  • HAR — 2.9x
  • Apple — 4.9x
  • Sony — 1.5x

Thus, HAR has given a mixed performance compared to its peers.