Aptiv (NYSE:APTV – Get Free Report) and Wabash National (NYSE:WNC – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Institutional & Insider Ownership
94.2% of Aptiv shares are owned by institutional investors. Comparatively, 97.1% of Wabash National shares are owned by institutional investors. 0.5% of Aptiv shares are owned by insiders. Comparatively, 2.2% of Wabash National shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Aptiv and Wabash National’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Aptiv | 5.12% | 18.46% | 7.19% |
Wabash National | -6.38% | -7.91% | -1.65% |
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Aptiv | 1 | 8 | 10 | 3 | 2.68 |
Wabash National | 0 | 1 | 0 | 0 | 2.00 |
Aptiv currently has a consensus price target of $81.50, indicating a potential upside of 25.06%. Wabash National has a consensus price target of $9.50, indicating a potential downside of 6.45%. Given Aptiv’s stronger consensus rating and higher probable upside, research analysts clearly believe Aptiv is more favorable than Wabash National.
Volatility & Risk
Aptiv has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.
Valuation & Earnings
This table compares Aptiv and Wabash National”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Aptiv | $19.71 billion | 0.72 | $1.79 billion | $4.37 | 14.91 |
Wabash National | $1.95 billion | 0.21 | -$284.07 million | ($2.42) | -4.20 |
Aptiv has higher revenue and earnings than Wabash National. Wabash National is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.
Summary
Aptiv beats Wabash National on 12 of the 15 factors compared between the two stocks.
About Aptiv
Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, 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. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.
About Wabash National
Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.
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