Financial Contrast: General Motors (GM) versus Adient PLC (ADNT)

General Motors (NYSE: GM) and Adient PLC (NASDAQ:ADNT) are both mid-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, valuation, institutional ownership and dividends.

Dividends

General Motors pays an annual dividend of $1.52 per share and has a dividend yield of 4.4%. Adient PLC does not pay a dividend. General Motors pays out 26.5% of its earnings in the form of a dividend. Adient PLC has increased its dividend for 2 consecutive years.

Valuation and Earnings

This table compares General Motors and Adient PLC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
General Motors $170.23 billion 0.30 $21.49 billion $5.74 6.09
Adient PLC $16.21 billion 0.38 $976.00 million N/A N/A

General Motors has higher revenue and earnings than Adient PLC.

Institutional & Insider Ownership

76.0% of General Motors shares are held by institutional investors. 0.0% of General Motors shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares General Motors and Adient PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
General Motors 5.38% 22.45% 4.47%
Adient PLC 5.63% 21.65% 7.56%

Analyst Ratings

This is a summary of current ratings for General Motors and Adient PLC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
General Motors 2 10 8 1 2.38
Adient PLC 1 7 5 0 2.31

General Motors presently has a consensus price target of $39.39, indicating a potential upside of 12.77%. Adient PLC has a consensus price target of $62.75, indicating a potential downside of 4.10%. Given General Motors’ stronger consensus rating and higher possible upside, analysts clearly believe General Motors is more favorable than Adient PLC.

Summary

General Motors beats Adient PLC on 10 of the 15 factors compared between the two stocks.

General Motors Company Profile

General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company’s segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.

Adient PLC Company Profile

Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.

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