Harman International Industries (NYSE: HAR) and Gentherm (NASDAQ:THRM) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.
This is a breakdown of current recommendations and price targets for Harman International Industries and Gentherm, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harman International Industries||0||1||0||0||2.00|
Risk and Volatility
Harman International Industries has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Valuation & Earnings
This table compares Harman International Industries and Gentherm’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Harman International Industries||N/A||N/A||N/A||$5.06||22.04|
|Gentherm||$917.60 million||1.29||$76.59 million||$1.81||17.76|
Gentherm has higher revenue and earnings than Harman International Industries. Gentherm is trading at a lower price-to-earnings ratio than Harman International Industries, indicating that it is currently the more affordable of the two stocks.
This table compares Harman International Industries and Gentherm’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Harman International Industries||5.12%||15.69%||6.40%|
Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Gentherm does not pay a dividend. Harman International Industries pays out 27.7% of its earnings in the form of a dividend. Gentherm has increased its dividend for 6 consecutive years.
Institutional and Insider Ownership
85.8% of Harman International Industries shares are owned by institutional investors. Comparatively, 99.3% of Gentherm shares are owned by institutional investors. 0.9% of Harman International Industries shares are owned by insiders. Comparatively, 2.3% of Gentherm shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Gentherm beats Harman International Industries on 11 of the 15 factors compared between the two stocks.
Harman International Industries Company Profile
Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.
Gentherm Company Profile
Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.
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