Nemak, S. A. B. de C. V. (OTCMKTS:NMAKF) & Lear (NYSE:LEA) Critical Survey

Lear (NYSE:LEA) and Nemak, S. A. B. de C. V. (OTCMKTS:NMAKF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.

Profitability

This table compares Lear and Nemak, S. A. B. de C. V.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lear	2.35%	14.18%	4.88%
Nemak, S. A. B. de C. V.	N/A	N/A	N/A

Earnings and Valuation

This table compares Lear and Nemak, S. A. B. de C. V.”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.26 billion	0.27	$436.80 million	$10.73	11.96
Nemak, S. A. B. de C. V.	N/A	N/A	N/A	N/A	N/A

Lear has higher revenue and earnings than Nemak, S. A. B. de C. V..

Institutional & Insider Ownership

97.0% of Lear shares are owned by institutional investors. 1.0% of Lear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Lear and Nemak, S. A. B. de C. V., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	11	4	1	2.38
Nemak, S. A. B. de C. V.	0	0	0	0	0.00

Lear currently has a consensus price target of $145.23, suggesting a potential upside of 13.13%. Given Lear’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Lear is more favorable than Nemak, S. A. B. de C. V..

Summary

Lear beats Nemak, S. A. B. de C. V. on 10 of the 10 factors compared between the two stocks.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About Nemak, S. A. B. de C. V.

Nemak, S. A. B. de C. V. develops, manufactures, and sells aluminum components for e-mobility, structure and chassis, and ICE powertrain applications to the automotive industry in North America, Europe, and internationally. It offers powertrain components, such as cylinder heads, engine blocks, transmission cases, and other ICE powertrain and auto parts; structural parts, including longitudinal members, shock towers, and subframes; and e-mobility components comprising e-drive, battery housings, and others. The company was formerly known as Tenedora Nemak, S. A. de C. V. and changed its name to Nemak, S. A. B. de C. V. in June 2015. The company was incorporated in 1979 and is based in García, Mexico. Nemak, S. A. B. de C. V. was formerly a subsidiary of Alfa S.A.B. de C.V. (BMV:ALFA A).