Adient PLC (NYSE: ADNT) and Tata Motors (NYSE:TTM) are both mid-cap auto & truck manufacturers – nec 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.

Dividends

Adient PLC pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Tata Motors does not pay a dividend. Adient PLC pays out 11.8% of its earnings in the form of a dividend.

Institutional and Insider Ownership

92.0% of Adient PLC shares are owned by institutional investors. Comparatively, 11.6% of Tata Motors shares are owned by institutional investors. 0.1% of Adient PLC 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Adient PLC 5.47% 23.74% 7.58%
Tata Motors 4.05% 14.78% 3.54%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adient PLC 1 4 3 0 2.25
Tata Motors 0 2 2 0 2.50

Adient PLC currently has a consensus price target of $72.13, indicating a potential downside of 5.34%. Tata Motors has a consensus price target of $30.00, indicating a potential downside of 7.64%. Given Adient PLC’s higher probable upside, equities analysts clearly believe Adient PLC is more favorable than Tata Motors.

Valuation and Earnings

This table compares Adient PLC and Tata Motors’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Adient PLC $16.21 billion 0.44 $877.00 million $9.35 8.15
Tata Motors $41.04 billion 0.54 $943.80 million $4.45 7.30

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

Summary

Adient PLC beats Tata Motors on 9 of the 15 factors compared between the two stocks.

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.

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.

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