Financial Contrast: American Axle & Manufact. (AXL) versus OmniTek Engineering (OMTK)

American Axle & Manufact. (NYSE:AXL) and OmniTek Engineering (OTCMKTS:OMTK) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.

Volatility and Risk

American Axle & Manufact. has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500. Comparatively, OmniTek Engineering has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for American Axle & Manufact. and OmniTek Engineering, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle & Manufact. 2 2 5 0 2.33
OmniTek Engineering 0 0 0 0 N/A

American Axle & Manufact. currently has a consensus price target of $19.43, suggesting a potential upside of 24.62%. Given American Axle & Manufact.’s higher probable upside, analysts plainly believe American Axle & Manufact. is more favorable than OmniTek Engineering.

Valuation and Earnings

This table compares American Axle & Manufact. and OmniTek Engineering’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Axle & Manufact. $6.27 billion 0.28 $337.10 million $3.75 4.16
OmniTek Engineering $1.07 million 3.82 -$1.03 million N/A N/A

American Axle & Manufact. has higher revenue and earnings than OmniTek Engineering.

Institutional and Insider Ownership

98.6% of American Axle & Manufact. shares are held by institutional investors. Comparatively, 0.0% of OmniTek Engineering shares are held by institutional investors. 1.0% of American Axle & Manufact. shares are held by company insiders. Comparatively, 54.0% of OmniTek Engineering shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares American Axle & Manufact. and OmniTek Engineering’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Axle & Manufact. 6.00% 28.88% 5.77%
OmniTek Engineering -64.06% -151.59% -47.50%

Summary

American Axle & Manufact. beats OmniTek Engineering on 8 of the 11 factors compared between the two stocks.

American Axle & Manufact. Company Profile

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting products. The company's Driveline segment offers axles, driveshafts, power transfer units, rear drive modules, transfer cases, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. Its Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears, transmission gears and shafts, and suspension components for original equipment manufacturers and automotive suppliers. The company's Powertrain segment offers transmission module and differential assemblies, transmission valve bodies, connecting rod forging and assemblies, torsional vibration dampers, and variable valve timing products for original equipment manufacturers and automotive suppliers. Its Casting segment produces thin wall castings and high strength ductile iron castings, as well as differential cases, steering knuckles, control arms, brackets, and turbo charger housings for the light vehicle, commercial, and industrial markets. The company has operations in the United States, Canada, Mexico, South America, China, Europe, other Asian countries, and internationally. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

OmniTek Engineering Company Profile

Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas conversion systems and other products worldwide. The company offers conversion kits for converting diesel engines to run on an alternative fuels, including compressed natural gas, liquefied natural gas, renewable natural gas, and liquid petroleum gas; and natural gas engines and components, as well as high-pressure natural gas coalescing filters. Its products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. The company sells and delivers its products through its products through its distributors, engine manufacturers, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. Omnitek Engineering Corp. was founded in 2001 and is headquartered in Vista, California.

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