Gentex Corporation (NASDAQ: GNTX) and Accuride (NYSE:ACW) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Risk & Volatility
Gentex Corporation has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Accuride has a beta of 2.6, suggesting that its share price is 160% more volatile than the S&P 500.
Earnings and Valuation
This table compares Gentex Corporation and Accuride’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Gentex Corporation||$1.75 billion||2.83||$615.67 million||$1.27||13.62|
Gentex Corporation has higher revenue and earnings than Accuride. Accuride is trading at a lower price-to-earnings ratio than Gentex Corporation, indicating that it is currently the more affordable of the two stocks.
Gentex Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Accuride does not pay a dividend. Gentex Corporation pays out 31.5% of its earnings in the form of a dividend.
This table compares Gentex Corporation and Accuride’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Gentex Corporation and Accuride, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gentex Corporation presently has a consensus target price of $21.50, indicating a potential upside of 24.28%. Accuride has a consensus target price of $2.58, indicating a potential upside of 0.00%. Given Gentex Corporation’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Gentex Corporation is more favorable than Accuride.
Insider and Institutional Ownership
82.4% of Gentex Corporation shares are owned by institutional investors. Comparatively, 46.6% of Accuride shares are owned by institutional investors. 2.5% of Gentex Corporation shares are owned by insiders. Comparatively, 2.6% of Accuride shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Gentex Corporation beats Accuride on 10 of the 13 factors compared between the two stocks.
About Gentex Corporation
Gentex Corporation designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry, and commercial smoke alarms and signaling devices for the fire protection industry. The Company’s business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Within this business segment, the Company also designs, develops and manufactures various electronics that are features to the interior and exterior automotive rearview mirrors, as well as interior visors, overhead consoles, and other locations in the vehicle. The Company ships its products to all of the automotive producing regions across the world, which it supports with various sales, engineering and distribution locations across the world.
Accuride Corporation is a United States-based manufacturer and supplier of wheels, wheel-end components and other products to the North American commercial vehicle industry. The Company’s products include steel and aluminum commercial vehicle wheels and assemblies, truck body and chassis parts, and gray, ductile and austempered ductile iron castings. The Company’s products are marketed under various brands, such as Accuride Wheel End Solutions (Accuride Wheels and Gunite), Accu-Flange and Gianetti Ruote. The Company uses Steel Armor steel wheel powder coating technology. The Company also offers stud-piloted, tubeless and tube-type forged aluminum wheels, brake drums and disc wheel hubs in commercial vehicles. The Company serves the original equipment manufacturers (OEMs) and their related aftermarket channels. The Company serves the commercial vehicle market, including heavy and medium-duty trucks, commercial trailers, light trucks, buses, and specialty and military vehicles.
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