Icahn Enterprises (IEP) & Sorl Auto Parts (SORL) Critical Contrast

Sorl Auto Parts (NASDAQ:SORL) and Icahn Enterprises (NASDAQ:IEP) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, dividends and valuation.

Insider & Institutional Ownership

6.3% of Sorl Auto Parts shares are held by institutional investors. Comparatively, 96.7% of Icahn Enterprises shares are held by institutional investors. 58.9% of Sorl Auto Parts shares are held by insiders. Comparatively, 90.1% of Icahn Enterprises shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Sorl Auto Parts and Icahn Enterprises’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sorl Auto Parts 5.75% 12.83% 4.14%
Icahn Enterprises 6.84% 10.19% 3.80%

Dividends

Icahn Enterprises pays an annual dividend of $7.00 per share and has a dividend yield of 10.3%. Sorl Auto Parts does not pay a dividend.

Valuation and Earnings

This table compares Sorl Auto Parts and Icahn Enterprises’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sorl Auto Parts $390.52 million 0.20 $24.32 million $1.26 3.21
Icahn Enterprises $21.74 billion 0.57 $2.43 billion N/A N/A

Icahn Enterprises has higher revenue and earnings than Sorl Auto Parts.

Risk and Volatility

Sorl Auto Parts has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, Icahn Enterprises has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Sorl Auto Parts and Icahn Enterprises, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sorl Auto Parts 0 0 1 0 3.00
Icahn Enterprises 1 0 0 0 1.00

Sorl Auto Parts presently has a consensus price target of $10.00, suggesting a potential upside of 146.91%. Icahn Enterprises has a consensus price target of $45.00, suggesting a potential downside of 33.92%. Given Sorl Auto Parts’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Sorl Auto Parts is more favorable than Icahn Enterprises.

Summary

Icahn Enterprises beats Sorl Auto Parts on 8 of the 14 factors compared between the two stocks.

Sorl Auto Parts Company Profile

SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers and the related aftermarket in the People's Republic of China. It operates through two segments, Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. The company offers a range of products covering 65 categories and approximately 2000 specifications in automotive brake systems that are principally used in various types of commercial vehicles, such as trucks and buses. SORL Auto Parts, Inc. markets its products under the SORL brand through authorized distributors. The company exports its products to approximately 104 countries and regions. SORL Auto Parts, Inc. was founded in 2003 and is headquartered in Rui'an, the People's Republic of China.

Icahn Enterprises Company Profile

Icahn Enterprises L.P., through its subsidiaries, operates in investment, automotive, energy, railcar, gaming, metals, mining, food packaging, real estate, and home fashion businesses in the United States, Germany, and Internationally. Its Investment segment operates various private investment funds. The company's Automotive segment manufactures and distributes components, accessories, and systems to the automotive, heavy-duty, marine, railroad, agricultural, off-road, aerospace, power generation, and industrial markets; and distributes automotive parts. Its Energy segment refines and markets transportation fuels; and manufactures nitrogen fertilizers. Its Railcar segment manufactures and sells railcars; and provides railcar repair services, as well as leases railcars. The company's Gaming segment owns and operates casino gaming properties, including 8 casino facilities with 5,800 hotel rooms. The company's Metals segment collects, processes, and sells ferrous and non-ferrous metals, as well as processes and distributes steel pipe and plate products. Its Mining segment produces and sells iron ore products to the steel industry. The company's Food Packaging segment produces and sells cellulosic, fibrous, and plastic casings for the processed meat and poultry industry. Its Real Estate segment is involved in the rental of commercial real estate properties; construction and sale of single-family and multi-family homes, lots in subdivisions and planned communities, and raw land for residential development; and operation of golf and club. The company's Home Fashion segment manufactures and distributes home fashion consumer products. Icahn Enterprises L.P. was founded in 1987 and is headquartered in New York, New York.

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