American Axle & Manufacturing (NYSE:DCH – Get Free Report) and Dorman Products (NASDAQ:DORM – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, valuation, earnings and dividends.
Profitability
This table compares American Axle & Manufacturing and Dorman Products’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
| Dorman Products | 10.18% | 19.37% | 11.53% |
Analyst Recommendations
This is a summary of current ratings for American Axle & Manufacturing and Dorman Products, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 5 | 3 | 0 | 2.22 |
| Dorman Products | 0 | 3 | 6 | 0 | 2.67 |
Valuation and Earnings
This table compares American Axle & Manufacturing and Dorman Products”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $5.84 billion | 0.27 | -$19.70 million | ($1.08) | -6.23 |
| Dorman Products | $2.13 billion | 1.86 | $204.19 million | $7.22 | 18.46 |
Dorman Products has lower revenue, but higher earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 84.7% of Dorman Products shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by company insiders. Comparatively, 7.7% of Dorman Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility and Risk
American Axle & Manufacturing has a beta of 1.6, meaning that its share price is 60% more volatile than the S&P 500. Comparatively, Dorman Products has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500.
Summary
Dorman Products beats American Axle & Manufacturing on 10 of the 14 factors compared between the two stocks.
About American Axle & Manufacturing
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.
About Dorman Products
Dorman Products, Inc. supplies replacement and upgrade parts for passenger cars, light trucks, medium- and heavy-duty trucks, utility terrain vehicles, and all-terrain vehicles in the motor vehicle aftermarket industry in the United States and internationally. It offers engine products, including intake and exhaust manifolds, fans, thermostat housings, and throttle bodies; undercar products comprising fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, and transmission and axle components; steering and suspension products consist of control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, such as door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products comprise new and remanufactured modules, clusters and sensors; and hardware products, such as threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise. The company also provides air tanks, shock absorbers, and air springs; transmission control modules, variable geometry timing actuators, and other control modules and sensors; new control arms, suspension components, door lock actuators, and handles for electric vehicles; and leaf springs, intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, UTV windshields, and complex electronics modules. It markets its products under the DORMAN, DORMAN OE FIX, HELP!, Conduct-Tite, Dayton Parts, SuperATV, Keller Performance Products, Assault Industries, Gboost, and GDP brands. Dorman Products, Inc. was founded in 1918 and is headquartered in Colmar, Pennsylvania.
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