Harman International Industries (NYSE: HAR) and Aptiv (NYSE:APTV) are both mid-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, dividends, analyst recommendations, risk and institutional ownership.
Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Aptiv pays an annual dividend of $1.49 per share and has a dividend yield of 1.6%. Harman International Industries pays out 27.7% of its earnings in the form of a dividend. Aptiv pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Harman International Industries has raised its dividend for 7 consecutive years.
85.8% of Harman International Industries shares are owned by institutional investors. Comparatively, 90.9% of Aptiv shares are owned by institutional investors. 0.9% of Harman International Industries shares are owned by company insiders. Comparatively, 0.3% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Harman International Industries and Aptiv’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%|
Valuation & Earnings
This table compares Harman International Industries and Aptiv’s top-line 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|
|Aptiv||$16.66 billion||1.49||$1.26 billion||$5.13||18.15|
Aptiv has higher revenue and earnings than Harman International Industries. Aptiv 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 is a breakdown of current recommendations for Harman International Industries and Aptiv, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Harman International Industries||0||1||0||0||2.00|
Aptiv has a consensus target price of $93.44, indicating a potential upside of 0.37%. Given Aptiv’s stronger consensus rating and higher probable upside, analysts clearly believe Aptiv is more favorable than Harman International Industries.
Volatility and Risk
Harman International Industries has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.
Aptiv beats Harman International Industries on 10 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.
Aptiv Company Profile
Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.
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