Critical Contrast: Adient (ADNT) vs. SORL Auto Parts (SORL)

Adient (NYSE: ADNT) and SORL Auto Parts (NASDAQ:SORL) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a summary of recent ratings and target prices for Adient and SORL Auto Parts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adient 2 7 2 0 2.00
SORL Auto Parts 0 0 1 0 3.00

Adient currently has a consensus target price of $66.55, indicating a potential upside of 35.28%. SORL Auto Parts has a consensus target price of $10.00, indicating a potential upside of 114.13%. Given SORL Auto Parts’ stronger consensus rating and higher possible upside, analysts clearly believe SORL Auto Parts is more favorable than Adient.

Profitability

This table compares Adient and SORL Auto Parts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adient 0.98% 16.65% 5.71%
SORL Auto Parts 6.08% 12.95% 4.70%

Risk & Volatility

Adient has a beta of -0.59, suggesting that its stock price is 159% less volatile than the S&P 500. Comparatively, SORL Auto Parts has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500.

Insider & Institutional Ownership

93.7% of Adient shares are held by institutional investors. Comparatively, 7.0% of SORL Auto Parts shares are held by institutional investors. 0.1% of Adient shares are held by insiders. Comparatively, 58.9% of SORL Auto Parts shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Adient and SORL Auto Parts’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adient $16.21 billion 0.28 $877.00 million $9.35 5.26
SORL Auto Parts $390.52 million 0.23 $24.32 million $1.26 3.71

Adient has higher revenue and earnings than SORL Auto Parts. SORL Auto Parts is trading at a lower price-to-earnings ratio than Adient, indicating that it is currently the more affordable of the two stocks.

Dividends

Adient pays an annual dividend of $1.10 per share and has a dividend yield of 2.2%. SORL Auto Parts does not pay a dividend. Adient pays out 11.8% of its earnings in the form of a dividend.

Summary

Adient beats SORL Auto Parts on 10 of the 16 factors compared between the two stocks.

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.

SORL Auto Parts Company Profile

SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers and the related aftermarket in the People's Republic of China. It operates through two segments, Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. The company offers a range of products covering 65 categories and approximately 2000 specifications in automotive brake systems that are principally used in various types of commercial vehicles, such as trucks and buses. SORL Auto Parts, Inc. markets its products under the SORL brand through authorized distributors. The company exports its products to approximately 104 countries and regions. SORL Auto Parts, Inc. was founded in 2003 and is headquartered in Rui'an, the People's Republic of China.

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