Analyzing American Axle & Manufacturing (DCH) and Its Rivals

American Axle & Manufacturing (NYSE:DCH) is one of 71 publicly-traded companies in the “AUTO/TRUCK – ORIG” industry, but how does it contrast to its competitors? We will compare American Axle & Manufacturing to similar companies based on the strength of its risk, analyst recommendations, dividends, earnings, valuation, institutional ownership and profitability.

Risk and Volatility

American Axle & Manufacturing has a beta of 1.61, indicating that its share price is 61% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing’s competitors have a beta of 4.63, indicating that their average share price is 363% more volatile than the S&P 500.

Earnings & Valuation

This table compares American Axle & Manufacturing and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
American Axle & Manufacturing	$5.84 billion	-$19.70 million	-30.94
American Axle & Manufacturing Competitors	$6.36 billion	$181.04 million	32.84

American Axle & Manufacturing’s competitors have higher revenue and earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 65.0% of shares of all “AUTO/TRUCK – ORIG” companies are owned by institutional investors. 3.7% of American Axle & Manufacturing shares are owned by company insiders. Comparatively, 8.0% of shares of all “AUTO/TRUCK – ORIG” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares American Axle & Manufacturing and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Axle & Manufacturing	-0.34%	10.00%	1.17%
American Axle & Manufacturing Competitors	-2,041.24%	-29.40%	-6.51%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for American Axle & Manufacturing and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Axle & Manufacturing	2	3	6	0	2.36
American Axle & Manufacturing Competitors	801	3649	4828	264	2.48

American Axle & Manufacturing currently has a consensus price target of $10.12, indicating a potential upside of 81.71%. As a group, “AUTO/TRUCK – ORIG” companies have a potential upside of 24.50%. Given American Axle & Manufacturing’s higher possible upside, equities analysts clearly believe American Axle & Manufacturing is more favorable than its competitors.

Summary

American Axle & Manufacturing competitors beat American Axle & Manufacturing on 7 of the 13 factors compared.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994, and is headquartered in Detroit, MI.