Gentherm (NASDAQ: THRM) and Delphi Automotive PLC (NYSE:DLPH) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitabiliy, risk and institutional ownership.

Volatility & Risk

Gentherm has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Delphi Automotive PLC has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Profitability

This table compares Gentherm and Delphi Automotive PLC’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%
Delphi Automotive PLC 6.90% 62.09% 14.49%

Earnings & Valuation

This table compares Gentherm and Delphi Automotive PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentherm $951.15 million 1.52 $157.55 million $2.45 16.04
Delphi Automotive PLC $16.90 billion 1.43 $3.04 billion $4.28 21.14

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

Institutional & Insider Ownership

98.5% of Gentherm shares are held by institutional investors. Comparatively, 93.4% of Delphi Automotive PLC shares are held by institutional investors. 2.3% of Gentherm shares are held by company insiders. Comparatively, 0.3% of Delphi Automotive PLC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Delphi Automotive PLC pays an annual dividend of $1.16 per share and has a dividend yield of 1.3%. Gentherm does not pay a dividend. Delphi Automotive PLC pays out 27.1% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gentherm and Delphi Automotive PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 4 5 0 2.56
Delphi Automotive PLC 2 2 14 0 2.67

Gentherm presently has a consensus target price of $42.14, suggesting a potential upside of 7.23%. Delphi Automotive PLC has a consensus target price of $91.47, suggesting a potential upside of 1.07%. Given Gentherm’s higher possible upside, research analysts clearly believe Gentherm is more favorable than Delphi Automotive PLC.

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 Delphi Automotive PLC

Delphi Automotive PLC is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic, powertrain and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, Powertrain Systems, and Electronics and Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Powertrain Systems segment offers products for engine management systems (EMS). The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

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