Gentherm (NASDAQ: THRM) and Fuel Systems Solutions (NASDAQ:FSYS) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, risk, profitabiliy, valuation and earnings.

Institutional and Insider Ownership

98.8% of Gentherm shares are held by institutional investors. 2.3% of Gentherm shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Gentherm and Fuel Systems Solutions’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentherm $951.15 million 1.45 $157.55 million $2.45 15.31
Fuel Systems Solutions N/A N/A N/A N/A N/A

Gentherm has higher revenue and earnings than Fuel Systems Solutions.

Profitability

This table compares Gentherm and Fuel Systems Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gentherm 9.47% 19.53% 10.88%
Fuel Systems Solutions N/A N/A N/A

Analyst Ratings

This is a summary of recent recommendations and price targets for Gentherm and Fuel Systems Solutions, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 4 5 0 2.56
Fuel Systems Solutions 0 0 0 0 N/A

Gentherm presently has a consensus target price of $41.86, suggesting a potential upside of 11.62%. Given Gentherm’s higher probable upside, equities analysts clearly believe Gentherm is more favorable than Fuel Systems Solutions.

Summary

Gentherm beats Fuel Systems Solutions on 8 of the 8 factors compared between the two stocks.

Gentherm Company Profile

Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.

Fuel Systems Solutions Company Profile

Fuel Systems Solutions, Inc. is engaged in providing alternative fuel systems for transportation, industrial and refueling applications across the world, as well as reduction technologies for the heavy duty truck and rail markets. The Company operates through two segments: FSS Industrial and FSS Automotive. The FSS Industrial segment consists of its industrial mobile and stationary, auxiliary power units (APU) and the heavy duty commercial transportation operations. The FSS Automotive segment consists of the Company’s passenger and light duty commercial transportation, automotive aftermarket and transportation infrastructure operations. Its products include gaseous fuel regulators, fuel shut-off valves, fuel metering and delivery systems, complete engine systems, auxiliary power systems and electronic controls for use in internal combustion engines. In addition to these core products, which it manufactures, the Company also designs, assembles and markets ancillary components.

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