Gentex Corporation (NASDAQ: GNTX) and Accuride (NYSE:ACW) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitabiliy and earnings.

Risk & Volatility

Gentex Corporation has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500. Comparatively, Accuride has a beta of 2.6, indicating that its stock price is 160% more volatile than the S&P 500.

Profitability

This table compares Gentex Corporation and Accuride’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gentex Corporation 21.01% 18.95% 15.79%
Accuride -5.89% -68.57% -5.28%

Institutional and Insider Ownership

82.4% of Gentex Corporation shares are held by institutional investors. Comparatively, 46.6% of Accuride shares are held by institutional investors. 2.5% of Gentex Corporation shares are held by insiders. Comparatively, 2.6% of Accuride shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Gentex Corporation and Accuride’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Gentex Corporation $1.75 billion 2.83 $615.60 million $1.27 13.58
Accuride N/A N/A N/A ($0.96) -2.69

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

Dividends

Gentex Corporation pays an annual dividend of $0.40 per share and has a dividend yield of 2.3%. Accuride does not pay a dividend. Gentex Corporation pays out 31.5% of its earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings for Gentex Corporation and Accuride, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentex Corporation 0 3 4 0 2.57
Accuride 0 1 0 0 2.00

Gentex Corporation presently has a consensus price target of $21.50, suggesting a potential upside of 24.64%. Accuride has a consensus price target of $2.58, suggesting a potential upside of 0.00%. Given Gentex Corporation’s stronger consensus rating and higher probable upside, research analysts clearly believe Gentex Corporation is more favorable than Accuride.

Summary

Gentex Corporation beats Accuride on 10 of the 13 factors compared between the two stocks.

Gentex Corporation Company Profile

Gentex Corporation designs and manufactures automatic-dimming rearview mirrors and electronics for the automotive industry, dimmable aircraft windows for the aviation industry, and commercial smoke alarms and signaling devices for the fire protection industry. The Company’s business segment involves designing, developing, manufacturing and marketing interior and exterior automatic-dimming automotive rearview mirrors that utilize electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Within this business segment, the Company also designs, develops and manufactures various electronics that are features to the interior and exterior automotive rearview mirrors, as well as interior visors, overhead consoles, and other locations in the vehicle. The Company ships its products to all of the automotive producing regions across the world, which it supports with various sales, engineering and distribution locations across the world.

Accuride Company Profile

Accuride Corporation is a United States-based manufacturer and supplier of wheels, wheel-end components and other products to the North American commercial vehicle industry. The Company’s products include steel and aluminum commercial vehicle wheels and assemblies, truck body and chassis parts, and gray, ductile and austempered ductile iron castings. The Company’s products are marketed under various brands, such as Accuride Wheel End Solutions (Accuride Wheels and Gunite), Accu-Flange and Gianetti Ruote. The Company uses Steel Armor steel wheel powder coating technology. The Company also offers stud-piloted, tubeless and tube-type forged aluminum wheels, brake drums and disc wheel hubs in commercial vehicles. The Company serves the original equipment manufacturers (OEMs) and their related aftermarket channels. The Company serves the commercial vehicle market, including heavy and medium-duty trucks, commercial trailers, light trucks, buses, and specialty and military vehicles.

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