Adient (NYSE:ADNT) and Denso (OTCMKTS:DNZOY) Financial Comparison

Denso (OTCMKTS:DNZOY) and Adient (NYSE:ADNT) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, earnings, dividends, institutional ownership, valuation, profitability and analyst recommendations.

Institutional & Insider Ownership

92.4% of Adient shares are owned by institutional investors. 0.9% of Adient shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Denso and Adient”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Denso	$50.09 billion	0.70	$2.93 billion	$1.07	11.26
Adient	$14.54 billion	0.11	-$281.00 million	$0.71	28.73

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

Profitability

This table compares Denso and Adient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Denso	5.82%	8.14%	5.18%
Adient	0.39%	7.28%	1.67%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Denso and Adient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denso	0	4	0	0	2.00
Adient	1	6	5	0	2.33

Adient has a consensus price target of $28.11, indicating a potential upside of 37.81%. Given Adient’s stronger consensus rating and higher probable upside, analysts plainly believe Adient is more favorable than Denso.

Volatility & Risk

Denso has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Adient has a beta of 1.53, meaning that its stock price is 53% more volatile than the S&P 500.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.

About Adient

Adient plc engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in North America and South America; Europe, Middle East, and Africa; and the Asia Pacific/China. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.