Analyzing Gentherm (NASDAQ:THRM) & Nokian Renkaat Oyj (OTCMKTS:NKRKF)

Nokian Renkaat Oyj (OTCMKTS:NKRKF) and Gentherm (NASDAQ:THRM) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Institutional and Insider Ownership

34.8% of Nokian Renkaat Oyj shares are held by institutional investors. Comparatively, 97.1% of Gentherm shares are held by institutional investors. 2.1% of Gentherm shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Nokian Renkaat Oyj and Gentherm, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokian Renkaat Oyj	0	0	1	0	3.00
Gentherm	0	5	2	1	2.50

Gentherm has a consensus price target of $45.80, indicating a potential upside of 4.09%. Given Gentherm’s higher probable upside, analysts clearly believe Gentherm is more favorable than Nokian Renkaat Oyj.

Earnings & Valuation

This table compares Nokian Renkaat Oyj and Gentherm”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.89	19.51
Gentherm	$1.58 billion	0.86	$18.28 million	$0.87	50.57

Gentherm has higher revenue and earnings than Nokian Renkaat Oyj. Nokian Renkaat Oyj is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nokian Renkaat Oyj and Gentherm’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokian Renkaat Oyj	N/A	N/A	N/A
Gentherm	1.68%	12.06%	6.09%

Summary

Gentherm beats Nokian Renkaat Oyj on 10 of the 12 factors compared between the two stocks.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.