Head to Head Review: Aptiv (NYSE:APTV) and Romeo Power (NYSE:RMO)

Aptiv (NYSE:APTVGet Rating) and Romeo Power (NYSE:RMOGet Rating) are both business services companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.

Profitability

This table compares Aptiv and Romeo Power’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aptiv 2.43% 7.23% 3.35%
Romeo Power -604.73% -48.68% -41.45%

Volatility & Risk

Aptiv has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500. Comparatively, Romeo Power has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Institutional and Insider Ownership

91.1% of Aptiv shares are owned by institutional investors. Comparatively, 49.6% of Romeo Power shares are owned by institutional investors. 0.4% of Aptiv shares are owned by insiders. Comparatively, 18.6% of Romeo Power shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Aptiv and Romeo Power’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aptiv $15.62 billion 1.77 $590.00 million $1.19 85.50
Romeo Power $16.80 million 6.45 $10.03 million ($1.23) -0.66

Aptiv has higher revenue and earnings than Romeo Power. Romeo Power is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Aptiv and Romeo Power, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 1 14 0 2.81
Romeo Power 0 2 0 0 2.00

Aptiv currently has a consensus price target of $160.11, indicating a potential upside of 57.35%. Romeo Power has a consensus price target of $5.67, indicating a potential upside of 603.15%. Given Romeo Power’s higher probable upside, analysts clearly believe Romeo Power is more favorable than Aptiv.

Summary

Aptiv beats Romeo Power on 11 of the 14 factors compared between the two stocks.

Aptiv Company Profile (Get Rating)

Aptiv PLC designs, manufacturers, and sells vehicle components worldwide. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates in two segment, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle's electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems integration, and software development for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, and autonomous driving technologies. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was founded in 2011 and is based in Dublin, Ireland.

Romeo Power Company Profile (Get Rating)

Romeo Power, Inc., an energy storage technology company, designs and manufactures lithium-ion battery modules and packs for vehicle electrification in North America. The company designs and manufactures battery modules, battery packs, and battery management system technologies; and provides non-recurring engineering services, such as design, prototype, and testing services. It serves commercial electric vehicle manufacturers, electric powertrain converters, electric watercraft manufacturers, fleet operators, and automobile, and recreational vehicle manufacturers. The company was founded in 2014 and is headquartered in Vernon, California.

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