Aptiv (APTV) vs. Meritor (MTOR) Head to Head Analysis

Aptiv (NYSE: APTV) and Meritor (NYSE:MTOR) are both business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, dividends, valuation and analyst recommendations.

Dividends

Aptiv pays an annual dividend of $0.88 per share and has a dividend yield of 1.0%. Meritor does not pay a dividend. Aptiv pays out 17.4% of its earnings in the form of a dividend.

Earnings and Valuation

This table compares Aptiv and Meritor’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aptiv $12.88 billion 1.91 $1.36 billion $5.05 18.30
Meritor $3.35 billion 0.68 $324.00 million $3.08 8.34

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

Profitability

This table compares Aptiv and Meritor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aptiv 8.27% 50.01% 12.88%
Meritor 7.69% 208.74% 7.75%

Insider and Institutional Ownership

88.2% of Aptiv shares are owned by institutional investors. Comparatively, 97.5% of Meritor shares are owned by institutional investors. 0.3% of Aptiv shares are owned by company insiders. Comparatively, 2.3% of Meritor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Aptiv has a beta of 1.49, indicating that its stock price is 49% more volatile than the S&P 500. Comparatively, Meritor has a beta of 2.45, indicating that its stock price is 145% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Aptiv and Meritor, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 2 16 0 2.79
Meritor 0 3 6 0 2.67

Aptiv currently has a consensus price target of $98.32, indicating a potential upside of 6.40%. Meritor has a consensus price target of $29.50, indicating a potential upside of 14.88%. Given Meritor’s higher probable upside, analysts plainly believe Meritor is more favorable than Aptiv.

Summary

Aptiv beats Meritor on 10 of the 16 factors compared between the two stocks.

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.

About Meritor

Meritor, Inc. is a supplier of a range of integrated systems, modules and components to original equipment manufacturers (OEMs) and the aftermarket for the commercial vehicle, transportation and industrial sectors. The Company’s segments include Commercial Truck & Industrial and Aftermarket & Trailer. The Commercial Truck & Industrial segment supplies drivetrain systems and components, including axles, drivelines and braking and suspension systems, for medium- and heavy-duty trucks, off-highway, military, construction, bus and coach, fire and emergency and other applications in North America, South America, Europe and Asia Pacific. The Commercial Truck & Industrial segment also includes the Company’s aftermarket businesses in Asia Pacific and South America. The Aftermarket & Trailer segment supplies axles, brakes, drivelines, suspension parts and other replacement and remanufactured parts to commercial vehicle aftermarket customers in North America and Europe.

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