Adient (NYSE: ADNT) and Gentherm (NASDAQ:THRM) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, dividends, earnings, profitability and institutional ownership.
This is a breakdown of recent ratings and target prices for Adient and Gentherm, as reported by MarketBeat.
||Strong Buy Ratings
Adient presently has a consensus price target of $67.92, suggesting a potential upside of 21.26%. Gentherm has a consensus price target of $37.40, suggesting a potential upside of 6.86%. Given Adient’s higher possible upside, equities analysts clearly believe Adient is more favorable than Gentherm.
Volatility and Risk
Adient has a beta of -0.4, suggesting that its share price is 140% less volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.
Earnings and Valuation
This table compares Adient and Gentherm’s revenue, earnings per share and valuation.
||Earnings Per Share
Adient has higher revenue and earnings than Gentherm. Adient is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
Adient pays an annual dividend of $1.10 per share and has a dividend yield of 2.0%. Gentherm does not pay a dividend. Adient pays out 11.8% of its earnings in the form of a dividend.
This table compares Adient and Gentherm’s net margins, return on equity and return on assets.
||Return on Equity
||Return on Assets
Institutional & Insider Ownership
93.0% of Adient shares are owned by institutional investors. Comparatively, 99.4% of Gentherm shares are owned by institutional investors. 0.1% of Adient shares are owned by insiders. Comparatively, 2.3% of Gentherm shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Gentherm beats Adient on 10 of the 16 factors compared between the two stocks.
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.
Gentherm Incorporated designs, develops, and manufactures thermal management technologies in North America, Europe, and Asia. The company operates through two segments, Automotive and Industrial. The Automotive segment offers automotive seat comfort systems, including seat heaters, variable temperature climate control seats that are designed to provide individualized thermal comfort to automobile passengers; and integrated electronic components, such as blowers and electronic control units. This segment also provides specialized automotive cable system products, including ready-made wire harnesses and related wiring products; automotive steering wheel heaters, heated door and armrests, heated and cooled cup holders, and thermal storage bins; and non-automotive products comprising heated and cooled mattress and furniture. This segment serves light vehicle original equipment manufacturers (OEMs), commercial vehicle OEMs, and automotive seat manufacturers. The Industrial segment offers remote power generation systems, patient temperature management systems, and environmental testing equipment and services. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was founded in 1968 and is headquartered in Northville, Michigan.
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