Gentherm (NASDAQ: THRM) and Fenix Parts (OTCMKTS:FENX) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, risk, earnings, analyst recommendations, institutional ownership and valuation.
This is a breakdown of current ratings and recommmendations for Gentherm and Fenix Parts, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider & Institutional Ownership
99.4% of Gentherm shares are owned by institutional investors. Comparatively, 4.1% of Fenix Parts shares are owned by institutional investors. 2.3% of Gentherm shares are owned by company insiders. Comparatively, 16.6% of Fenix Parts shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Risk & Volatility
Gentherm has a beta of 1.86, meaning that its share price is 86% more volatile than the S&P 500. Comparatively, Fenix Parts has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.
Earnings and Valuation
This table compares Gentherm and Fenix Parts’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gentherm||$917.60 million||1.23||$76.59 million||$1.81||17.02|
|Fenix Parts||$132.10 million||0.04||-$42.86 million||($2.03)||-0.13|
Gentherm has higher revenue and earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
This table compares Gentherm and Fenix Parts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Gentherm beats Fenix Parts on 12 of the 13 factors compared between the two stocks.
Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.
About Fenix Parts
Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.
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