Contrasting Aptiv (APTV) and Its Peers

Aptiv (NYSE:APTV) is one of 148 public companies in the “Automobile Components” industry, but how does it weigh in compared to its rivals? We will compare Aptiv to related businesses based on the strength of its risk, earnings, dividends, institutional ownership, analyst recommendations, profitability and valuation.

Profitability

This table compares Aptiv and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aptiv	4.60%	15.44%	6.63%
Aptiv Competitors	-40.87%	0.04%	-1.91%

Institutional & Insider Ownership

94.2% of Aptiv shares are held by institutional investors. Comparatively, 48.4% of shares of all “Automobile Components” companies are held by institutional investors. 0.1% of Aptiv shares are held by insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Aptiv has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Aptiv’s rivals have a beta of 3.88, suggesting that their average stock price is 288% more volatile than the S&P 500.

Valuation and Earnings

This table compares Aptiv and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Aptiv	$20.40 billion	$165.00 million	10.88
Aptiv Competitors	$6.56 billion	$73.97 million	3.02

Aptiv has higher revenue and earnings than its rivals. Aptiv is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of current ratings for Aptiv and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	1	6	16	1	2.71
Aptiv Competitors	1087	4496	6135	202	2.46

Aptiv currently has a consensus target price of $69.02, indicating a potential upside of 74.83%. As a group, “Automobile Components” companies have a potential upside of 73.94%. Given Aptiv’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Aptiv is more favorable than its rivals.

Summary

Aptiv beats its rivals on 11 of the 13 factors compared.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.