Aptiv (NYSE:APTV) vs. American Axle & Manufacturing (NYSE:DCH) Head to Head Review

American Axle & Manufacturing (NYSE:DCH) and Aptiv (NYSE:APTV) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, valuation, earnings, analyst recommendations and risk.

Valuation & Earnings

This table compares American Axle & Manufacturing and Aptiv”s 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	0.18	-$19.70 million	($1.34)	-3.34
Aptiv	$20.40 billion	0.39	$165.00 million	$3.63	10.90

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Axle & Manufacturing	-2.28%	15.93%	2.06%
Aptiv	4.60%	15.44%	6.63%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for American Axle & Manufacturing and Aptiv, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Axle & Manufacturing	2	5	4	0	2.18
Aptiv	1	6	16	1	2.71

American Axle & Manufacturing presently has a consensus target price of $8.79, indicating a potential upside of 96.40%. Aptiv has a consensus target price of $69.02, indicating a potential upside of 74.52%. Given American Axle & Manufacturing’s higher possible upside, analysts clearly believe American Axle & Manufacturing is more favorable than Aptiv.

Risk & Volatility

American Axle & Manufacturing has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 94.2% of Aptiv shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by company insiders. Comparatively, 0.1% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Aptiv beats American Axle & Manufacturing on 11 of the 15 factors compared between the two stocks.

About American Axle & Manufacturing

American Axle & Manufacturing (AAM) designs and manufactures driveline and metal-forming products for the automotive and mobility industries. Its products include axles, driveshafts, differentials, transfer cases, electric-drive systems and related components used in a range of vehicles. Founded in 1994 from former General Motors axle and foundry operations, AAM is headquartered in Detroit, Michigan, and serves automakers and other customers through operations in North America, South America, Europe and Asia.

About Aptiv

Aptiv plc is a global automotive technology supplier that develops software, electrical systems and components for vehicle manufacturers. Its products and services support vehicle connectivity, safety, electrification and automation. The company’s offerings include vehicle electrical architectures, wiring and connection systems, advanced driver-assistance technologies, and software and computing platforms. Aptiv serves automakers and other customers across multiple regions worldwide. Aptiv took its current name in 2017, when Delphi Automotive separated its powertrain business, which became Delphi Technologies.