Head-To-Head Contrast: Mobileye Global (NASDAQ:MBLY) versus Lear (NYSE:LEA)

Lear (NYSE:LEA) and Mobileye Global (NASDAQ:MBLY) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, valuation, institutional ownership, earnings and dividends.

Volatility & Risk

Lear has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Mobileye Global has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Lear	2.05%	13.94%	4.63%
Mobileye Global	-17.34%	0.68%	0.66%

Valuation and Earnings

This table compares Lear and Mobileye Global”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.31 billion	0.24	$506.60 million	$8.57	12.08
Mobileye Global	$1.65 billion	6.33	-$3.09 billion	($0.42)	-30.60

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

Insider & Institutional Ownership

97.0% of Lear shares are held by institutional investors. Comparatively, 13.3% of Mobileye Global shares are held by institutional investors. 0.9% of Lear shares are held by insiders. Comparatively, 2.8% of Mobileye Global shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Lear and Mobileye Global, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	10	2	0	2.17
Mobileye Global	2	8	10	1	2.48

Lear presently has a consensus price target of $115.00, indicating a potential upside of 11.05%. Mobileye Global has a consensus price target of $18.94, indicating a potential upside of 47.43%. Given Mobileye Global’s stronger consensus rating and higher probable upside, analysts clearly believe Mobileye Global is more favorable than Lear.

Summary

Lear beats Mobileye Global on 9 of the 15 factors compared between the two stocks.

About Lear

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.

About Mobileye Global

Mobileye Global Inc. develops and deploys advanced driver assistance systems (ADAS) and autonomous driving technologies and solutions worldwide. The company operates through Mobileye and Other segments. It offers Driver Assist comprising ADAS and autonomous vehicle solutions that covers safety features, such as real-time detection of road users, geometry, semantics, and markings to provide safety alerts and emergency interventions; Cloud-Enhanced Driver Assist, a solution for drivers with interpretations of a scene in real-time; Mobileye SuperVision Lite, a navigation and assisted driving solution; and Mobileye SuperVision, an operational point-to-point assisted driving navigation solution on various road types and includes cloud-based enhancements, such as road experience management. The company also provides Mobileye Chauffeur, a first-generation solution for eyes-off/hands-off driving with a human driver still in the driver’s seat; Mobileye Drive, a self-driving system comprising of radar and lidar subsystems, as well as collision avoidance systems, including Mobileye 8 Connect for light and medium-duty vehicles, and Mobileye Shield+ for large vehicles. It serves original equipment manufacturers. The company was founded in 1999 and is headquartered in Jerusalem, Israel. Mobileye Global Inc. operates as a subsidiary of Intel Overseas Funding Corporation.