Adient (NYSE:ADNT) and Mobileye Global (NASDAQ:MBLY) Critical Survey

Mobileye Global (NASDAQ:MBLY) and Adient (NYSE:ADNT) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-201.49%	0.70%	0.67%
Adient	0.32%	7.32%	1.66%

Analyst Ratings

This is a summary of recent recommendations and price targets for Mobileye Global and Adient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	2	10	8	2	2.45
Adient	2	3	7	0	2.42

Mobileye Global presently has a consensus target price of $11.41, suggesting a potential upside of 61.55%. Adient has a consensus target price of $25.70, suggesting a potential upside of 46.04%. Given Mobileye Global’s stronger consensus rating and higher possible upside, research analysts clearly believe Mobileye Global is more favorable than Adient.

Valuation & Earnings

This table compares Mobileye Global and Adient”s top-line 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	3.13	-$392.00 million	($4.99)	-1.41
Adient	$14.54 billion	0.09	-$281.00 million	$0.60	29.33

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

Institutional & Insider Ownership

13.3% of Mobileye Global shares are owned by institutional investors. Comparatively, 92.4% of Adient shares are owned by institutional investors. 10.0% of Mobileye Global shares are owned by company insiders. Comparatively, 0.9% of Adient shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Mobileye Global has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500. Comparatively, Adient has a beta of 1.6, suggesting that its stock price is 60% more volatile than the S&P 500.

Summary

Adient beats Mobileye Global on 9 of the 15 factors compared between the two stocks.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.