|Continental AG: More Than Just Tires, But I Still Prefer Michelin
Summary Continental often gets mistaken for being 'just' a tire manufacturer, but only 25% of its revenue is generated in the tire division.
Continental is a car parts manufacturer, and with a free cash flow yield of 6.25%, I'm not convinced Continental provides the value I'm looking for.
I'm preferring Michelin, although the latter predominantly focuses on tires.
This idea was discussed in more depth with members of my private investing community, European Small-Cap Ideas.
Introduction After publishing an article about Michelin (OTCPK:MGDDF) (OTCPK:MGDDY), some readers asked me to compare Michelin with Continental AG (OTCPK:CTTAF) (OTCPK:CTTAY). A fair question, as Continental is widely associated with the tires carrying the same brand name, but what few people know is how diversified Continental really is. Whereas Michelin generates in excess of 85% of its revenue from selling tires, this percentage is just 25% at Continental as Continental really is a full-blown car parts supplier rather than a tire manufacturer. The chassis & safety, powertrain and interior divisions contribute in excess of 60% to the total revenue
[ 本帖最後由 Curry 於 2018-9-5 14:18 編輯