Financial Analysis: Garrett Motion (OTCMKTS:GTXMQ) vs. Mobileye Global (NASDAQ:MBLY)

Mobileye Global (NASDAQ:MBLY) and Garrett Motion (OTCMKTS:GTXMQ) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, earnings, valuation, profitability, analyst recommendations and dividends.

Analyst Ratings

This is a summary of recent ratings and target prices for Mobileye Global and Garrett Motion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mobileye Global	2	11	11	1	2.44
Garrett Motion	0	0	0	0	0.00

Mobileye Global presently has a consensus price target of $12.65, indicating a potential upside of 47.47%. Given Mobileye Global’s stronger consensus rating and higher possible upside, analysts plainly believe Mobileye Global is more favorable than Garrett Motion.

Institutional & Insider Ownership

13.3% of Mobileye Global shares are held by institutional investors. Comparatively, 12.7% of Garrett Motion shares are held by institutional investors. 10.0% of Mobileye Global shares are held by company insiders. Comparatively, 0.9% of Garrett Motion shares are held 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.

Earnings and Valuation

This table compares Mobileye Global and Garrett Motion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mobileye Global	$1.89 billion	3.80	-$392.00 million	($4.99)	-1.72
Garrett Motion	$3.25 billion	0.00	$313.00 million	$3.86	N/A

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

Profitability

This table compares Mobileye Global and Garrett Motion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mobileye Global	-201.49%	0.70%	0.67%
Garrett Motion	6.65%	-6.89%	6.44%

Risk and Volatility

Mobileye Global has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Garrett Motion has a beta of 2.55, meaning that its share price is 155% more volatile than the S&P 500.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.

About Garrett Motion

Garrett Motion, Inc. provides automobile technology. The firm engages in the designing, manufacturing and selling engineered turbocharger, electric-boosting technologies for light and commercial vehicle original equipment manufacturers. It offers light vehicle gasoline, light vehicle diesel and commercial vehicle turbochargers that enhance vehicle performance, fuel economy and drivability. The company was founded on March 14, 2018 and is headquartered in Rolle, Switzerland.