Analyzing Gentherm (NASDAQ:THRM) and Greenkraft (OTCMKTS:GKIT)

Gentherm (NASDAQ:THRM) and Greenkraft (OTCMKTS:GKIT) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, dividends, institutional ownership, profitability, analyst recommendations, earnings and risk.

Volatility & Risk

Gentherm has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Greenkraft has a beta of 218.23, indicating that its stock price is 21,723% more volatile than the S&P 500.

Valuation & Earnings

This table compares Gentherm and Greenkraft”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.47 billion	0.81	$64.95 million	$1.00	38.74
Greenkraft	$180,000.00	2.80	-$360,000.00	N/A	N/A

Gentherm has higher revenue and earnings than Greenkraft.

Analyst Recommendations

This is a summary of current recommendations and price targets for Gentherm and Greenkraft, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	0	3	2	1	2.67
Greenkraft	0	0	0	0	0.00

Gentherm currently has a consensus price target of $43.00, indicating a potential upside of 11.00%. Given Gentherm’s stronger consensus rating and higher probable upside, analysts plainly believe Gentherm is more favorable than Greenkraft.

Profitability

This table compares Gentherm and Greenkraft’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentherm	2.08%	9.55%	4.80%
Greenkraft	N/A	N/A	N/A

Insider and Institutional Ownership

97.1% of Gentherm shares are owned by institutional investors. 1.4% of Gentherm shares are owned 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.

Summary

Gentherm beats Greenkraft on 11 of the 13 factors compared between the two stocks.

About Gentherm

Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.

About Greenkraft

Greenkraft, Inc. manufactures and distributes automotive products for fleet operators, cities, and businesses in the United States. The company offers commercial forward cabin trucks that run on alternative fuels, such as compressed natural gas or liquefied propane gas. It also manufactures and sells alternative fuel systems; and converts petroleum-based fuel vehicles to run on alternative fuels, such as CNG or LPG. The company has strategic partnership with CEE, LLC and G&K Automotive Conversion Inc. for research and development activities, as well as to test its engines prior to applying for the CARB and EPA certifications. Greenkraft, Inc. was founded in 2006 and is headquartered in Santa Ana, California.