Analyzing Dorman Products (DORM) and American Axle & Manufact. Holdings (AXL)
Dorman Products (NASDAQ: DORM) and American Axle & Manufact. Holdings (NYSE:AXL) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, analyst recommendations, risk, institutional ownership, dividends, valuation and earnings.
Insider & Institutional Ownership
75.6% of Dorman Products shares are held by institutional investors. 11.7% of Dorman Products shares are held by insiders. Comparatively, 1.0% of American Axle & Manufact. Holdings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Dorman Products and American Axle & Manufact. Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|American Axle & Manufact. Holdings||3.77%||26.95%||4.17%|
Risk & Volatility
Dorman Products has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500. Comparatively, American Axle & Manufact. Holdings has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Dorman Products and American Axle & Manufact. Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|American Axle & Manufact. Holdings||2||2||8||0||2.50|
Dorman Products presently has a consensus price target of $78.00, indicating a potential upside of 15.15%. American Axle & Manufact. Holdings has a consensus price target of $19.44, indicating a potential upside of 29.98%. Given American Axle & Manufact. Holdings’ stronger consensus rating and higher possible upside, analysts plainly believe American Axle & Manufact. Holdings is more favorable than Dorman Products.
Valuation and Earnings
This table compares Dorman Products and American Axle & Manufact. Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorman Products||$892.77 million||2.58||$197.74 million||$3.28||20.65|
|American Axle & Manufact. Holdings||$4.76 billion||0.35||$815.70 million||$2.95||5.07|
American Axle & Manufact. Holdings has higher revenue and earnings than Dorman Products. American Axle & Manufact. Holdings is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.
Dorman Products Company Profile
Dorman Products, Inc. is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. As of December 31, 2016, the Company distributed and marketed approximately 155,000 different stock keeping units (SKU’s) of automotive replacement parts and fasteners. As of December 31, 2016, approximately 83% of its products were sold under brands that it owned and the remainder of its products were sold for resale under customers’ private labels, other brands or in bulk. Its products are sold in the United States through automotive aftermarket retailers, national, regional and local warehouse distributors, and specialty markets, and salvage yards. It also distributes automotive replacement parts outside the United States, with sales primarily into Canada, Mexico, Europe, the Middle East, and Australia. Its parts are marketed under the OE Solutions, TECHoice, AutoGrade, Conduct-Tite, FirstStop and HD Solutions brand names.
American Axle & Manufact. Holdings Company Profile
American Axle & Manufacturing Holdings, Inc. (AAM) manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, crossover vehicles, passenger cars and commercial vehicles. Its driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. Its driveline, drivetrain and related products include axles, driveheads, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, transmission parts, electric drive systems and metal-formed products. The Company’s subsidiary, e-AAM Driveline Systems AB (e-AAM), engineers and develops battery electric and hybrid driveline systems to be commercialized for crossover vehicles and passenger cars. As of April 6, 2017, it operated in 17 countries and had approximately 90 manufacturing, engineering and business office facilities around the world.
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