Financial Review: Aptiv (APTV) versus The Competition

Aptiv (NYSE: APTV) is one of 27 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it compare to its peers? We will compare Aptiv to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Risk & Volatility

Aptiv has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Aptiv’s peers have a beta of 1.37, meaning that their average share price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Aptiv and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 3 15 0 2.74
Aptiv Competitors 159 976 1520 43 2.54

Aptiv presently has a consensus target price of $93.44, indicating a potential upside of 3.30%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 8.49%. Given Aptiv’s peers higher possible upside, analysts clearly believe Aptiv has less favorable growth aspects than its peers.

Dividends

Aptiv pays an annual dividend of $1.49 per share and has a dividend yield of 1.6%. Aptiv pays out 29.0% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 22.8% of their earnings in the form of a dividend.

Insider & Institutional Ownership

90.8% of Aptiv shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 0.3% of Aptiv shares are owned by company insiders. Comparatively, 15.8% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Aptiv and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Aptiv $16.66 billion $1.26 billion 17.63
Aptiv Competitors $5.80 billion $324.11 million 106.10

Aptiv has higher revenue and earnings than its peers. Aptiv is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Aptiv and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aptiv 8.00% 57.92% 14.04%
Aptiv Competitors -115.64% -49.59% -7.23%

Summary

Aptiv beats its peers on 10 of the 15 factors compared.

About Aptiv

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

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