Critical Review: Aptiv (APTV) & Its Peers

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

Profitability

This table compares Aptiv and its rivals’ 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 -115.63% -37.32% -1.79%

Insider and Institutional Ownership

90.8% of Aptiv shares are owned by institutional investors. Comparatively, 68.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 0.3% of Aptiv shares are owned by insiders. Comparatively, 18.4% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Aptiv and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Aptiv $16.66 billion $1.26 billion 18.11
Aptiv Competitors $5.80 billion $324.11 million 119.87

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

Analyst Recommendations

This is a summary of current ratings and price targets for Aptiv and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 3 15 0 2.74
Aptiv Competitors 167 978 1524 43 2.53

Aptiv presently has a consensus target price of $93.44, indicating a potential upside of 0.58%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 1.39%. Given Aptiv’s rivals higher probable upside, analysts clearly believe Aptiv has less favorable growth aspects than its rivals.

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 22.7% of their earnings in the form of a dividend.

Volatility and Risk

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

Summary

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

Aptiv Company Profile

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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