Lear (NYSE:LEA) & ElringKlinger (OTCMKTS:ELLRY) Financial Contrast

ElringKlinger (OTCMKTS:ELLRY) and Lear (NYSE:LEA) are both consumer cyclical companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, risk, profitability and dividends.

Insider and Institutional Ownership

97.0% of Lear shares are held by institutional investors. 0.8% of Lear shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares ElringKlinger and Lear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ElringKlinger	N/A	N/A	N/A
Lear	2.30%	14.75%	5.00%

Analyst Recommendations

This is a summary of current recommendations and price targets for ElringKlinger and Lear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ElringKlinger	0	0	0	0	N/A
Lear	0	4	5	0	2.56

Lear has a consensus target price of $154.67, suggesting a potential upside of 42.88%. Given Lear’s higher possible upside, analysts clearly believe Lear is more favorable than ElringKlinger.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ElringKlinger	N/A	N/A	N/A	N/A	N/A
Lear	$23.63 billion	0.26	$572.50 million	$9.17	11.80

Lear has higher revenue and earnings than ElringKlinger.

Summary

Lear beats ElringKlinger on 8 of the 8 factors compared between the two stocks.

About ElringKlinger

ElringKlinger AG develops, manufactures, and sells systems and components for the automotive industry in Germany, the Asia-Pacific, North America, rest of Europe, and internationally. It operates through four segments: Original Equipment, Aftermarket, Engineered Plastics, and Other. The Original Equipment segment is involved in the development, manufacture, and sale of products and assemblies, such as metal sealing systems and drive train components; thermoplastics for drivetrains, body, and underbody applications; hybrid technologies; thermal, acoustic, and aerodynamic shielding systems; cylinder-head and specialty gaskets; battery and fuel cell components and systems; electric drive units; and exhaust gas purification. This segment serves passenger car and commercial vehicle sectors. The Aftermarket segment offers a range of gaskets, gasket sets, and service parts for the repair of engines, transmissions, exhaust systems, and auxiliary units in cars and commercial vehicles under the Elring Das Original brand. This segment serves a network of wholesalers and purchasing organizations. The Engineered Plastics segment develops, manufactures, and markets customized products made from various plastics for the mechanical engineering sector, as well as in medical, chemical, energy, and vehicle industries. The Other segment operates engine test benches and measuring equipment for testing engines, transmissions, and exhaust systems for vehicle manufacturers and automotive suppliers; and offers logistics and catering services. ElringKlinger AG was founded in 1879 and is headquartered in Dettingen an der Erms, Germany.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.