Lear (NYSE:LEA) versus Holley (NYSE:HLLY) Critical Comparison

Lear (NYSE:LEAGet Rating) and Holley (NYSE:HLLYGet Rating) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Profitability

This table compares Lear and Holley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lear 1.94% 9.99% 3.62%
Holley N/A 4.76% 0.93%

Valuation & Earnings

This table compares Lear and Holley’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Lear $19.26 billion 0.40 $373.90 million $6.17 21.07
Holley $692.85 million 2.20 -$27.14 million N/A N/A

Lear has higher revenue and earnings than Holley.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Lear and Holley, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lear 2 6 7 0 2.33
Holley 0 0 5 0 3.00

Lear presently has a consensus target price of $178.53, indicating a potential upside of 37.35%. Holley has a consensus target price of $15.05, indicating a potential upside of 16.40%. Given Lear’s higher possible upside, equities analysts plainly believe Lear is more favorable than Holley.

Risk and Volatility

Lear has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Holley has a beta of -0.17, meaning that its stock price is 117% less volatile than the S&P 500.

Institutional and Insider Ownership

98.0% of Lear shares are owned by institutional investors. Comparatively, 30.3% of Holley shares are owned by institutional investors. 0.4% of Lear shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Lear beats Holley on 10 of the 12 factors compared between the two stocks.

Lear Company Profile (Get Rating)

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

Holley Company Profile (Get Rating)

Holley Inc. designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. The company's products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products, and exhaust products as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channel. The company was founded in 1903 and is headquartered in Bowling Green, Kentucky.

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