Contrasting Gentherm (NASDAQ:THRM) & Service Team (OTCMKTS:SVTE)

Service Team (OTCMKTS:SVTE) and Gentherm (NASDAQ:THRM) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, dividends, profitability, valuation, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

97.1% of Gentherm shares are held by institutional investors. 0.0% of Service Team shares are held by company insiders. Comparatively, 1.4% of Gentherm shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Service Team and Gentherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Service Team	N/A	N/A	N/A
Gentherm	2.08%	9.55%	4.80%

Analyst Ratings

This is a summary of current recommendations for Service Team and Gentherm, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Service Team	0	0	0	0	0.00
Gentherm	0	3	2	1	2.67

Gentherm has a consensus price target of $43.00, indicating a potential upside of 22.06%. Given Gentherm’s stronger consensus rating and higher possible upside, analysts plainly believe Gentherm is more favorable than Service Team.

Earnings and Valuation

This table compares Service Team and Gentherm”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Service Team	N/A	N/A	N/A	N/A	N/A
Gentherm	$1.47 billion	0.73	$64.95 million	$1.00	35.23

Gentherm has higher revenue and earnings than Service Team.

Risk and Volatility

Service Team has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.

Summary

Gentherm beats Service Team on 11 of the 11 factors compared between the two stocks.

About Service Team

Service Team Inc. manufactures, maintains, and repairs truck bodies in the United States. It manufactures truck bodies that are attached to a truck chassis; and other products used by the trucking industry. The vans are available for hauling dry freight or refrigerated freight. It serves auto dealers and users of trucks, such as dairies, food distributors, and local delivery. The company was founded in 2011 and is based in Villa Park, California.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.