Reviewing Adient (ADNT) and Its Peers

Adient (NYSE: ADNT) is one of 45 publicly-traded companies in the “Motor vehicle parts & accessories” industry, but how does it weigh in compared to its rivals? We will compare Adient to related companies based on the strength of its earnings, institutional ownership, valuation, risk, analyst recommendations, dividends and profitability.

Dividends

Adient pays an annual dividend of $1.10 per share and has a dividend yield of 1.7%. Adient pays out 11.8% of its earnings in the form of a dividend. As a group, “Motor vehicle parts & accessories” companies pay a dividend yield of 1.7% and pay out 21.3% of their earnings in the form of a dividend.

Institutional and Insider Ownership

91.9% of Adient shares are owned by institutional investors. Comparatively, 73.4% of shares of all “Motor vehicle parts & accessories” companies are owned by institutional investors. 0.1% of Adient shares are owned by company insiders. Comparatively, 13.8% of shares of all “Motor vehicle parts & accessories” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk and Volatility

Adient has a beta of -0.38, suggesting that its stock price is 138% less volatile than the S&P 500. Comparatively, Adient’s rivals have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Adient and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adient 2 7 2 0 2.00
Adient Competitors 255 1246 1816 80 2.51

Adient currently has a consensus price target of $67.30, indicating a potential upside of 5.29%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 10.78%. Given Adient’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Adient has less favorable growth aspects than its rivals.

Valuation & Earnings

This table compares Adient and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Adient $16.21 billion $877.00 million 6.84
Adient Competitors $7.88 billion $494.29 million 13.25

Adient has higher revenue and earnings than its rivals. Adient 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.

Profitability

This table compares Adient and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adient 3.19% 18.72% 6.35%
Adient Competitors 2.32% 23.71% 5.98%

Summary

Adient rivals beat Adient on 9 of the 15 factors compared.

Adient Company Profile

Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company operates through two segments, Seating and Interiors. The Seating segment produces automotive seat metal structures and mechanisms, foams, trims, fabrics, and seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trims, and other products. The company operates in the Americas, Europe, China, and internationally. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

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