Gentherm (NASDAQ: THRM) and Visteon Corporation (NYSE:VC) 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, earnings, risk, profitabiliy and valuation.

Institutional and Insider Ownership

98.3% of Gentherm shares are owned by institutional investors. 2.3% of Gentherm shares are owned by company insiders. Comparatively, 0.2% of Visteon Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Gentherm has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Visteon Corporation has a beta of 0.91, meaning that its stock price is 9% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Gentherm and Visteon Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentherm 0 4 4 0 2.50
Visteon Corporation 0 4 7 0 2.64

Gentherm presently has a consensus target price of $40.43, indicating a potential upside of 28.34%. Visteon Corporation has a consensus target price of $112.60, indicating a potential upside of 1.08%. Given Gentherm’s higher possible upside, equities analysts plainly believe Gentherm is more favorable than Visteon Corporation.

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 8.34% 16.34% 9.44%
Visteon Corporation 4.35% 27.56% 8.67%

Valuation and 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 $961.81 million 1.21 $157.43 million $2.18 14.45
Visteon Corporation $3.17 billion 1.10 $335.00 million $4.19 26.59

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.

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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