Head to Head Contrast: Aptiv (NYSE:APTV) & Patrick Industries (NASDAQ:PATK)

Patrick Industries (NASDAQ:PATK) and Aptiv (NYSE:APTV) are both mid-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Institutional and Insider Ownership

93.3% of Patrick Industries shares are owned by institutional investors. Comparatively, 94.2% of Aptiv shares are owned by institutional investors. 3.8% of Patrick Industries shares are owned by company insiders. Comparatively, 0.1% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.38%	12.61%	4.61%
Aptiv	4.60%	15.44%	6.63%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	0	2	7	0	2.78
Aptiv	2	4	17	1	2.71

Patrick Industries presently has a consensus target price of $103.00, indicating a potential upside of 23.93%. Aptiv has a consensus target price of $69.45, indicating a potential upside of 69.84%. Given Aptiv’s higher probable upside, analysts plainly believe Aptiv is more favorable than Patrick Industries.

Volatility & Risk

Patrick Industries has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Valuation and Earnings

This table compares Patrick Industries and Aptiv”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patrick Industries	$3.95 billion	0.68	$135.06 million	$3.85	21.59
Aptiv	$20.40 billion	0.41	$165.00 million	$1.06	38.58

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

Summary

Aptiv beats Patrick Industries on 10 of the 15 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.