Mobileye Global (NASDAQ:MBLY) & Strattec Security (NASDAQ:STRT) Financial Review

Mobileye Global (NASDAQ:MBLY) and Strattec Security (NASDAQ:STRT) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Profitability

This table compares Mobileye Global and Strattec Security’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-201.25%	0.66%	0.61%
Strattec Security	2.94%	10.06%	6.84%

Earnings and Valuation

This table compares Mobileye Global and Strattec Security”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobileye Global	$1.89 billion	2.60	-$392.00 million	($4.95)	-1.18
Strattec Security	$574.19 million	0.43	$20.60 million	$4.12	14.90

Strattec Security has lower revenue, but higher earnings than Mobileye Global. Mobileye Global is trading at a lower price-to-earnings ratio than Strattec Security, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Mobileye Global has a beta of 1.3, meaning that its stock price is 30% more volatile than the S&P 500. Comparatively, Strattec Security has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Mobileye Global and Strattec Security, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	3	11	8	1	2.30
Strattec Security	0	1	2	1	3.00

Mobileye Global presently has a consensus price target of $10.43, indicating a potential upside of 78.16%. Strattec Security has a consensus price target of $79.00, indicating a potential upside of 28.71%. Given Mobileye Global’s higher possible upside, analysts clearly believe Mobileye Global is more favorable than Strattec Security.

Insider & Institutional Ownership

13.3% of Mobileye Global shares are held by institutional investors. Comparatively, 68.9% of Strattec Security shares are held by institutional investors. 10.0% of Mobileye Global shares are held by insiders. Comparatively, 3.1% of Strattec Security shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Strattec Security beats Mobileye Global on 9 of the 14 factors compared between the two stocks.

About Mobileye Global

Mobileye Global develops advanced driver-assistance systems (ADAS) and autonomous-driving technologies for automakers. Its products include EyeQ system-on-chips, computer-vision software, sensing and mapping technologies, and driver-assistance and automated-driving systems designed for vehicles ranging from mass-market models to premium platforms. Founded in Israel in 1999, Mobileye was acquired by Intel in 2017 and became a publicly traded company again in 2022. The company is headquartered in Jerusalem and serves automotive manufacturers and other mobility customers around the world.

About Strattec Security

Strattec Security Corporation (NASDAQ: STRT) designs and manufactures automotive access, security and vehicle-control products. Its offerings include mechanical and electronic locks, latches, keys, ignition systems, power-liftgate and sliding-door systems, actuators, and related security components used in passenger vehicles and commercial vehicles. The company supplies automotive original equipment manufacturers and other transportation-industry customers. Its products are developed for applications such as vehicle entry, theft deterrence, body access and electronic control, and are produced and supported through operations in North America and other international locations.