Gentherm (NASDAQ: THRM) and Visteon Corporation (NYSE:VC) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitabiliy, earnings, valuation and risk.

Volatility and Risk

Gentherm has a beta of 1.96, indicating that its stock price is 96% more volatile than the S&P 500. Comparatively, Visteon Corporation has a beta of 0.89, indicating that its stock price is 11% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Gentherm and Visteon Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 4 5 0 2.56
Visteon Corporation 0 5 6 0 2.55

Gentherm currently has a consensus price target of $41.86, suggesting a potential upside of 6.78%. Visteon Corporation has a consensus price target of $98.59, suggesting a potential downside of 5.75%. Given Gentherm’s stronger consensus rating and higher probable upside, analysts clearly believe Gentherm is more favorable than Visteon Corporation.

Insider & Institutional Ownership

98.5% of Gentherm shares are held by institutional investors. 2.3% of Gentherm shares are held by company insiders. Comparatively, 0.2% of Visteon Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gentherm and Visteon Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentherm $951.15 million 1.51 $157.55 million $2.45 16.00
Visteon Corporation $3.17 billion 1.05 $330.00 million $3.54 29.55

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

Profitability

This table compares Gentherm and Visteon Corporation’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%
Visteon Corporation 3.76% 26.74% 8.49%

Summary

Gentherm beats Visteon Corporation on 8 of the 14 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.

Visteon Corporation Company Profile

Visteon Corporation is a global automotive supplier that designs, engineers and manufactures electronics products for original equipment vehicle manufacturer (OEM), including Ford, Mazda, Nissan/Renault, General Motors, Honda BMW and Daimler. The Company operates through Electronics segment. The Electronics segment provides vehicle cockpit electronics products to customers, including instrument clusters, information displays, infotainment, audio systems, telematics solutions and head up displays. It designs and manufacturers vehicle cockpit electronics components, modules and systems. It offers a range of information displays incorporating a sleek profile, craftsmanship and touch sensors, designed to deliver high performance for the automotive market. It offers a range of audio products, including audio head units, and analog and digital radios, which deliver consumer device connectivity. It offers an automotive-grade, integrated domain controller approach, called Smartcore.

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