Aptiv (APTV) & Its Peers Critical Survey

Aptiv (NYSE: APTV) is one of 27 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its rivals? We will compare Aptiv to related businesses based on the strength of its institutional ownership, analyst recommendations, earnings, valuation, risk, dividends and profitability.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Aptiv $16.66 billion $1.26 billion 18.11
Aptiv Competitors $5.80 billion $324.11 million 119.45

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

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 8.00% 57.92% 14.04%
Aptiv Competitors -115.64% -49.59% -7.23%

Insider & Institutional Ownership

90.8% of Aptiv shares are owned by institutional investors. Comparatively, 71.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 0.3% of Aptiv shares are owned by company insiders. Comparatively, 15.8% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by company 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.

Dividends

Aptiv pays an annual dividend of $1.49 per share and has a dividend yield of 1.6%. Aptiv pays out 29.0% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.6% and pay out 22.8% of their earnings in the form of a dividend. Aptiv lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of recent ratings for Aptiv and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 3 15 0 2.74
Aptiv Competitors 167 978 1523 43 2.53

Aptiv currently has a consensus price target of $93.44, suggesting a potential upside of 0.58%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 0.49%. Given Aptiv’s stronger consensus rating and higher probable upside, research analysts clearly believe Aptiv is more favorable than its rivals.

Volatility and Risk

Aptiv has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Aptiv’s rivals have a beta of 1.37, meaning that their average stock price is 37% more volatile than the S&P 500.

Summary

Aptiv beats its rivals on 10 of the 15 factors compared.

About Aptiv

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

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