Critical Survey: Mobileye Global (NASDAQ:MBLY) vs. Aptiv (NYSE:APTV)

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

Valuation and Earnings

This table compares Aptiv and Mobileye Global”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$19.71 billion	0.90	$1.79 billion	$1.26	65.01
Mobileye Global	$1.65 billion	6.45	-$3.09 billion	($0.42)	-31.17

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

Volatility and Risk

Aptiv has a beta of 1.58, meaning that its share price is 58% more volatile than the S&P 500. Comparatively, Mobileye Global has a beta of 0.51, meaning that its share price is 49% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Aptiv	1.46%	18.51%	7.38%
Mobileye Global	-17.34%	0.68%	0.66%

Insider & Institutional Ownership

94.2% of Aptiv shares are owned by institutional investors. Comparatively, 13.3% of Mobileye Global shares are owned by institutional investors. 0.5% of Aptiv shares are owned by company insiders. Comparatively, 1.8% of Mobileye Global shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Aptiv and Mobileye Global, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	1	6	14	3	2.79
Mobileye Global	2	8	10	1	2.48

Aptiv presently has a consensus target price of $94.56, indicating a potential upside of 15.44%. Mobileye Global has a consensus target price of $18.94, indicating a potential upside of 44.72%. Given Mobileye Global’s higher possible upside, analysts clearly believe Mobileye Global is more favorable than Aptiv.

Summary

Aptiv beats Mobileye Global 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 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.