Superior Industries International (SUP) and Aptiv (APTV) Head to Head Review

Superior Industries International (NYSE: SUP) and Aptiv (NYSE:APTV) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Analyst Ratings

This is a summary of recent ratings for Superior Industries International and Aptiv, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Industries International 0 1 3 0 2.75
Aptiv 1 3 15 0 2.74

Superior Industries International currently has a consensus target price of $23.75, suggesting a potential upside of 49.37%. Aptiv has a consensus target price of $96.83, suggesting a potential upside of 2.78%. Given Superior Industries International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Superior Industries International is more favorable than Aptiv.

Profitability

This table compares Superior Industries International and Aptiv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Industries International 0.66% 7.96% 3.32%
Aptiv 8.00% 57.92% 14.04%

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.3%. Aptiv pays an annual dividend of $1.49 per share and has a dividend yield of 1.6%. Superior Industries International pays out -180.0% of its earnings in the form of a dividend. Aptiv pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Superior Industries International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

84.4% of Superior Industries International shares are held by institutional investors. Comparatively, 91.1% of Aptiv shares are held by institutional investors. 1.5% of Superior Industries International shares are held by insiders. Comparatively, 0.3% of Aptiv shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Superior Industries International and Aptiv’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Industries International $732.70 million 0.54 $41.38 million ($0.20) -79.50
Aptiv $16.66 billion 1.50 $1.26 billion $5.13 18.36

Aptiv has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.

Summary

Aptiv beats Superior Industries International on 10 of the 15 factors compared between the two stocks.

About Superior Industries International

Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.

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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