Gentex (NASDAQ:GNTX) and Adient (NYSE:ADNT) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Insider and Institutional Ownership
83.3% of Gentex shares are owned by institutional investors. Comparatively, 97.8% of Adient shares are owned by institutional investors. 0.4% of Gentex shares are owned by insiders. Comparatively, 0.5% of Adient shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Gentex has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Adient has a beta of 3.19, meaning that its share price is 219% more volatile than the S&P 500.
This table compares Gentex and Adient’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings & Valuation
This table compares Gentex and Adient’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gentex||$1.83 billion||3.60||$437.88 million||$1.62||16.01|
|Adient||$17.44 billion||0.12||-$1.69 billion||$5.62||3.82|
Gentex has higher earnings, but lower revenue than Adient. Adient is trading at a lower price-to-earnings ratio than Gentex, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and price targets for Gentex and Adient, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gentex currently has a consensus target price of $22.94, indicating a potential downside of 11.56%. Adient has a consensus target price of $22.47, indicating a potential upside of 4.68%. Given Adient’s higher probable upside, analysts plainly believe Adient is more favorable than Gentex.
Gentex pays an annual dividend of $0.46 per share and has a dividend yield of 1.8%. Adient pays an annual dividend of $0.28 per share and has a dividend yield of 1.3%. Gentex pays out 28.4% of its earnings in the form of a dividend. Adient pays out 5.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gentex has raised its dividend for 8 consecutive years. Gentex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Gentex beats Adient on 9 of the 16 factors compared between the two stocks.
Gentex Corporation provides digital vision, connected car, dimmable glass, and fire protection products worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also manufactures and sells variable dimmable windows to aircraft manufacturers and airline operators. In addition, it provides photoelectric smoke detectors and alarms, electrochemical carbon monoxide detectors and alarms, audible and visual signaling alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.
Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. It operates through three segments: Seating, Seat Structures and Mechanisms (SS&M), and Interiors. The Seating segment produces seat systems for automotive and other mobility applications, as well as various components of seat systems, including foams, trims, and fabrics. The SS&M segment produces seat structures and mechanisms for inclusion in seat systems that are produced by others. 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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