Aptiv (NYSE: APTV) and Horizon Global (NYSE:HZN) are both cyclical consumer goods & services companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Volatility and Risk
Aptiv has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Horizon Global has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500.
This table compares Aptiv and Horizon Global’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Aptiv||$16.66 billion||1.48||$1.26 billion||$5.13||18.11|
|Horizon Global||$649.20 million||0.51||-$12.36 million||($0.42)||-31.79|
Aptiv has higher revenue and earnings than Horizon Global. Horizon Global is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.
This table compares Aptiv and Horizon Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and recommmendations for Aptiv and Horizon Global, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Aptiv presently has a consensus target price of $93.44, suggesting a potential upside of 0.58%. Horizon Global has a consensus target price of $20.20, suggesting a potential upside of 51.31%. Given Horizon Global’s higher probable upside, analysts plainly believe Horizon Global is more favorable than Aptiv.
Insider and Institutional Ownership
90.9% of Aptiv shares are held by institutional investors. Comparatively, 90.8% of Horizon Global shares are held by institutional investors. 0.3% of Aptiv shares are held by insiders. Comparatively, 1.3% of Horizon Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Aptiv pays an annual dividend of $1.49 per share and has a dividend yield of 1.6%. Horizon Global does not pay a dividend. Aptiv pays out 29.0% of its earnings in the form of a dividend.
Aptiv beats Horizon Global on 12 of the 16 factors compared between the two stocks.
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 Horizon Global
Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.
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