Tata Motors (NYSE: TTM) and Adient PLC (NASDAQ:ADNT) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, risk, valuation and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Tata Motors and Adient PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tata Motors 0 2 2 0 2.50
Adient PLC 1 7 5 0 2.31

Tata Motors presently has a consensus target price of $30.00, indicating a potential upside of 0.84%. Adient PLC has a consensus target price of $62.75, indicating a potential downside of 5.45%. Given Tata Motors’ stronger consensus rating and higher probable upside, research analysts clearly believe Tata Motors is more favorable than Adient PLC.

Profitability

This table compares Tata Motors and Adient PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tata Motors 3.38% 19.45% 4.54%
Adient PLC 5.63% 21.65% 7.56%

Insider and Institutional Ownership

12.7% of Tata Motors shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tata Motors and Adient PLC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Tata Motors $40.45 billion 0.50 $4.00 billion $1.63 18.25
Adient PLC $16.21 billion 0.38 $976.00 million N/A N/A

Tata Motors has higher revenue and earnings than Adient PLC.

Summary

Tata Motors beats Adient PLC on 6 of the 10 factors compared between the two stocks.

Tata Motors Company Profile

Tata Motors Limited is an automobile company. The Company is engaged in manufacture of motor vehicles. The Company is engaged mainly in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company’s segments include automotive operations and all other operations. The Company’s automotive segment operations include all activities relating to the development, design, manufacture, assembly and sale of vehicles, including vehicle financing, as well as sale of related parts and accessories. In the automotive segment, the Company manufactures and sells passenger cars, utility vehicles, light commercial vehicles, and medium and heavy commercial vehicles. The Company’s all other operations segment mainly includes information technology (IT) services, and machine tools and factory automation services. The Company operates in over 160 countries across the world.

Adient PLC Company Profile

Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.

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