Head-To-Head Survey: Meritor (MTOR) vs. Aptiv (APTV)

Meritor (NYSE: MTOR) and Aptiv (NYSE:APTV) are both cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, analyst recommendations, valuation, profitability, earnings and dividends.

Valuation and Earnings

This table compares Meritor and Aptiv’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Meritor $3.35 billion 0.70 $324.00 million $3.08 8.55
Aptiv $12.88 billion 1.83 $1.36 billion $3.81 23.24

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

Risk & Volatility

Meritor has a beta of 2.45, meaning that its stock price is 145% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500.

Profitability

This table compares Meritor and Aptiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Meritor 7.69% 208.74% 7.75%
Aptiv 8.27% 50.01% 12.88%

Analyst Ratings

This is a breakdown of current ratings for Meritor and Aptiv, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Meritor 0 3 6 0 2.67
Aptiv 1 2 16 0 2.79

Meritor currently has a consensus price target of $29.50, indicating a potential upside of 12.04%. Aptiv has a consensus price target of $98.32, indicating a potential upside of 11.02%. Given Meritor’s higher probable upside, equities analysts clearly believe Meritor is more favorable than Aptiv.

Dividends

Aptiv pays an annual dividend of $0.88 per share and has a dividend yield of 1.0%. Meritor does not pay a dividend. Aptiv pays out 23.1% of its earnings in the form of a dividend.

Institutional and Insider Ownership

98.4% of Meritor shares are owned by institutional investors. Comparatively, 90.9% of Aptiv shares are owned by institutional investors. 2.3% of Meritor shares are owned by insiders. Comparatively, 0.3% of Aptiv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Aptiv beats Meritor on 10 of the 16 factors compared between the two stocks.

Meritor Company Profile

Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.

Aptiv Company Profile

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & 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 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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