Gentex (NASDAQ:GNTX – Get Free Report) and American Axle & Manufacturing (NYSE:DCH – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Institutional & Insider Ownership
86.8% of Gentex shares are owned by institutional investors. Comparatively, 91.4% of American Axle & Manufacturing shares are owned by institutional investors. 0.5% of Gentex shares are owned by insiders. Comparatively, 2.1% of American Axle & Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Ratings
This is a summary of current ratings and recommmendations for Gentex and American Axle & Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gentex | 1 | 5 | 1 | 0 | 2.00 |
| American Axle & Manufacturing | 2 | 5 | 4 | 0 | 2.18 |
Gentex presently has a consensus target price of $25.20, indicating a potential upside of 19.37%. American Axle & Manufacturing has a consensus target price of $9.01, indicating a potential upside of 76.86%. Given American Axle & Manufacturing’s stronger consensus rating and higher possible upside, analysts clearly believe American Axle & Manufacturing is more favorable than Gentex.
Valuation & Earnings
This table compares Gentex and American Axle & Manufacturing”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gentex | $2.63 billion | 1.71 | $384.84 million | $1.89 | 11.17 |
| American Axle & Manufacturing | $8.22 billion | 0.15 | -$19.70 million | ($1.08) | -4.72 |
Gentex has higher earnings, but lower revenue than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Gentex, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gentex and American Axle & Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gentex | 15.50% | 16.78% | 14.18% |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
Risk & Volatility
Gentex has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.69, meaning that its share price is 69% more volatile than the S&P 500.
About Gentex
Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.
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