Adient (NYSE:ADNT) & ECARX (NASDAQ:ECXWW) Critical Contrast

ECARX (NASDAQ:ECXWW) and Adient (NYSE:ADNT) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Institutional and Insider Ownership

92.4% of Adient shares are owned by institutional investors. 0.9% of Adient shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ECARX and Adient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ECARX	N/A	N/A	N/A
Adient	0.32%	7.32%	1.66%

Analyst Ratings

This is a summary of current ratings for ECARX and Adient, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ECARX	0	0	0	0	0.00
Adient	2	4	6	0	2.33

Adient has a consensus price target of $26.60, indicating a potential upside of 36.62%. Given Adient’s stronger consensus rating and higher probable upside, analysts clearly believe Adient is more favorable than ECARX.

Earnings & Valuation

This table compares ECARX and Adient”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ECARX	$881.26 million	N/A	N/A	N/A	N/A
Adient	$15.13 billion	0.10	-$281.00 million	$0.60	32.45

ECARX has higher earnings, but lower revenue than Adient.

Summary

Adient beats ECARX on 9 of the 9 factors compared between the two stocks.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.