Head to Head Review: Toyota Motor Corp Ltd Ord (TM) & Adient PLC (ADNT)
Toyota Motor Corp Ltd Ord (NYSE: TM) and Adient PLC (NYSE:ADNT) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.
Insider & Institutional Ownership
0.8% of Toyota Motor Corp Ltd Ord shares are owned by institutional investors. Comparatively, 93.8% of Adient PLC shares are owned by institutional investors. 0.1% of Adient PLC shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Toyota Motor Corp Ltd Ord and Adient PLC’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Toyota Motor Corp Ltd Ord||$255.27 billion||0.74||$17.03 billion||$11.65||10.82|
|Adient PLC||$16.21 billion||0.45||$877.00 million||$9.47||8.20|
Toyota Motor Corp Ltd Ord has higher revenue and earnings than Adient PLC. Adient PLC is trading at a lower price-to-earnings ratio than Toyota Motor Corp Ltd Ord, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and target prices for Toyota Motor Corp Ltd Ord and Adient PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Toyota Motor Corp Ltd Ord||1||2||2||0||2.20|
Toyota Motor Corp Ltd Ord currently has a consensus target price of $112.11, indicating a potential downside of 11.08%. Adient PLC has a consensus target price of $72.13, indicating a potential downside of 7.12%. Given Adient PLC’s stronger consensus rating and higher possible upside, analysts plainly believe Adient PLC is more favorable than Toyota Motor Corp Ltd Ord.
Toyota Motor Corp Ltd Ord pays an annual dividend of $1.97 per share and has a dividend yield of 1.6%. Adient PLC pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Toyota Motor Corp Ltd Ord pays out 16.9% of its earnings in the form of a dividend. Adient PLC pays out 11.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This table compares Toyota Motor Corp Ltd Ord and Adient PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Toyota Motor Corp Ltd Ord||6.82%||10.50%||3.93%|
Adient PLC beats Toyota Motor Corp Ltd Ord on 8 of the 15 factors compared between the two stocks.
About Toyota Motor Corp Ltd Ord
Toyota Motor Corporation (Toyota) conducts business in the automotive industry. The Company also conducts business in finance and other industries. The Company’s segments include Automotive, Financial Services and All Other. Toyota sells its vehicles in approximately 190 countries and regions. Toyota’s markets for its automobiles are Japan, North America, Europe and Asia. The Company’s Automotive segment includes the design, manufacture, assembly and sale of passenger vehicles, minivans and commercial vehicles, such as trucks and related parts and accessories. The Company’s Financial Services segment consists of providing financing to dealers and their customers for the purchase or lease of Toyota vehicles. The All Other segment includes the design, manufacturing and sale of housing, telecommunications and other businesses. Its information technology related businesses include a Web portal for automobile information called GAZOO.com.
About Adient PLC
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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