American Axle & Manufacturing (DCH) and Its Competitors Critical Analysis

American Axle & Manufacturing (NYSE:DCH) is one of 31 publicly-traded companies in the “Motor Vehicle Parts & Accessories” industry, but how does it contrast to its competitors? We will compare American Axle & Manufacturing to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Analyst Recommendations

This is a summary of current ratings and recommmendations for American Axle & Manufacturing and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Axle & Manufacturing	1	1	0	0	1.50
American Axle & Manufacturing Competitors	176	672	515	3	2.25

As a group, “Motor Vehicle Parts & Accessories” companies have a potential downside of 11.53%. Given American Axle & Manufacturing’s competitors stronger consensus rating and higher probable upside, analysts plainly believe American Axle & Manufacturing has less favorable growth aspects than its competitors.

Risk and Volatility

American Axle & Manufacturing has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing’s competitors have a beta of 1.85, suggesting that their average share price is 85% more volatile than the S&P 500.

Earnings & Valuation

This table compares American Axle & Manufacturing and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Axle & Manufacturing	$5.84 billion	-$19.70 million	-40.28
American Axle & Manufacturing Competitors	$1.47 billion	-$2.71 million	-11.63

American Axle & Manufacturing has higher revenue, but lower earnings than its competitors. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 47.8% of shares of all “Motor Vehicle Parts & Accessories” companies are owned by institutional investors. 3.7% of American Axle & Manufacturing shares are owned by insiders. Comparatively, 13.1% of shares of all “Motor Vehicle Parts & Accessories” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares American Axle & Manufacturing and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Axle & Manufacturing	-0.34%	9.92%	1.25%
American Axle & Manufacturing Competitors	-561.48%	-11.41%	-7.15%

Summary

American Axle & Manufacturing competitors beat American Axle & Manufacturing on 7 of the 13 factors compared.

American Axle & Manufacturing Company Profile

American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.