Financial Review: Fox Factory (NASDAQ:FOXXW) and American Axle & Manufacturing (NYSE:DCH)

Fox Factory (NASDAQ:FOXXW) and American Axle & Manufacturing (NYSE:DCH) are both consumer cyclical companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, profitability, analyst recommendations, institutional ownership and valuation.

Valuation and Earnings

This table compares Fox Factory and American Axle & Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fox Factory	$59.54 million	N/A	N/A	N/A	N/A
American Axle & Manufacturing	$6.80 billion	0.23	-$19.70 million	($0.76)	-8.77

Fox Factory has higher earnings, but lower revenue than American Axle & Manufacturing.

Insider & Institutional Ownership

91.4% of American Axle & Manufacturing shares are held by institutional investors. 2.1% of American Axle & Manufacturing shares are held 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.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Fox Factory and American Axle & Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fox Factory	0	0	0	0	0.00
American Axle & Manufacturing	1	3	2	0	2.17

American Axle & Manufacturing has a consensus price target of $10.25, suggesting a potential upside of 53.79%. Given American Axle & Manufacturing’s stronger consensus rating and higher possible upside, analysts plainly believe American Axle & Manufacturing is more favorable than Fox Factory.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Fox Factory	N/A	N/A	N/A
American Axle & Manufacturing	-1.87%	13.65%	1.69%

Summary

American Axle & Manufacturing beats Fox Factory on 8 of the 9 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.