Head to Head Analysis: Aisin Seiki (OTCMKTS:ASEKY) and Autoliv (NYSE:ALV)

Autoliv (NYSE:ALV) and Aisin Seiki (OTCMKTS:ASEKY) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Profitability

This table compares Autoliv and Aisin Seiki’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autoliv	5.79%	29.36%	8.86%
Aisin Seiki	3.14%	6.73%	3.68%

Dividends

Autoliv pays an annual dividend of $3.48 per share and has a dividend yield of 3.0%. Aisin Seiki pays an annual dividend of $0.30 per share and has a dividend yield of 2.2%. Autoliv pays out 41.0% of its earnings in the form of a dividend. Aisin Seiki pays out 20.7% 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. Autoliv has raised its dividend for 1 consecutive years. Autoliv is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a breakdown of recent recommendations for Autoliv and Aisin Seiki, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoliv	0	6	6	0	2.50
Aisin Seiki	0	1	0	1	3.00

Autoliv presently has a consensus price target of $134.85, indicating a potential upside of 14.36%. Given Autoliv’s higher possible upside, equities research analysts plainly believe Autoliv is more favorable than Aisin Seiki.

Valuation & Earnings

This table compares Autoliv and Aisin Seiki”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Autoliv	$10.81 billion	0.80	$735.00 million	$8.49	13.89
Aisin Seiki	$34.00 billion	0.29	$1.13 billion	$1.45	9.52

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

Institutional & Insider Ownership

69.6% of Autoliv shares are owned by institutional investors. 0.3% of Autoliv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Autoliv has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Summary

Autoliv beats Aisin Seiki on 13 of the 18 factors compared between the two stocks.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.