Gentherm (NASDAQ: THRM) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitabiliy.

Earnings & Valuation

This table compares Gentherm and Fox Factory Holding Corp.’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentherm $951.15 million 1.51 $157.55 million $2.45 15.94
Fox Factory Holding Corp. $429.19 million 3.12 $69.55 million $1.13 31.77

Gentherm has higher revenue and earnings than Fox Factory Holding Corp.. Gentherm is trading at a lower price-to-earnings ratio than Fox Factory Holding Corp., indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Gentherm and Fox Factory Holding Corp., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 4 5 0 2.56
Fox Factory Holding Corp. 0 4 2 0 2.33

Gentherm presently has a consensus price target of $41.86, suggesting a potential upside of 7.19%. Fox Factory Holding Corp. has a consensus price target of $28.60, suggesting a potential downside of 20.33%. Given Gentherm’s stronger consensus rating and higher probable upside, research analysts plainly believe Gentherm is more favorable than Fox Factory Holding Corp..

Profitability

This table compares Gentherm and Fox Factory Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gentherm 9.47% 19.53% 10.88%
Fox Factory Holding Corp. 10.01% 30.07% 16.33%

Risk & Volatility

Gentherm has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Fox Factory Holding Corp. has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

98.5% of Gentherm shares are held by institutional investors. Comparatively, 95.7% of Fox Factory Holding Corp. shares are held by institutional investors. 2.3% of Gentherm shares are held by company insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Gentherm beats Fox Factory Holding Corp. on 8 of the 14 factors compared between the two stocks.

About Gentherm

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.

About Fox Factory Holding Corp.

Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.

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