Financial Analysis: Halfords Group (OTCMKTS:HLFDY) vs. Gentex (NASDAQ:GNTX)

Gentex (NASDAQ:GNTX) and Halfords Group (OTCMKTS:HLFDY) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their risk, dividends, valuation, institutional ownership, profitability, earnings and analyst recommendations.

Earnings & Valuation

This table compares Gentex and Halfords Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentex	$2.31 billion	2.23	$404.49 million	$1.70	13.89
Halfords Group	$2.19 billion	0.19	-$42.87 million	N/A	N/A

Gentex has higher revenue and earnings than Halfords Group.

Institutional & Insider Ownership

86.8% of Gentex shares are held by institutional investors. 0.5% of Gentex shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Gentex pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Halfords Group pays an annual dividend of $0.13 per share and has a dividend yield of 3.4%. Gentex pays out 28.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Gentex and Halfords Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentex	0	7	2	0	2.22
Halfords Group	0	0	0	0	0.00

Gentex currently has a consensus target price of $28.29, indicating a potential upside of 19.81%. Given Gentex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gentex is more favorable than Halfords Group.

Profitability

This table compares Gentex and Halfords Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentex	15.61%	15.86%	13.87%
Halfords Group	N/A	N/A	N/A

Risk & Volatility

Gentex has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500. Comparatively, Halfords Group has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Summary

Gentex beats Halfords Group on 11 of the 14 factors compared between the two stocks.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

About Halfords Group

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. The company operates through two segments, Retail and Car Servicing. The Retail segment is involved in the retail of automotive, leisure, cycling products and accessories, auto parts, and accessories through its stores and online. The Car Servicing segment provides car servicing and repair services from garages and mobile vans. The company also provides software as a service. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.