Ford Motor (NYSE: F) and Adient PLC (NASDAQ:ADNT) are both mid-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.

Insider and Institutional Ownership

54.3% of Ford Motor shares are owned by institutional investors. 1.1% of Ford Motor shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and target prices for Ford Motor and Adient PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ford Motor 2 11 6 0 2.21
Adient PLC 1 7 5 0 2.31

Ford Motor presently has a consensus target price of $12.42, suggesting a potential upside of 6.87%. Adient PLC has a consensus target price of $62.75, suggesting a potential downside of 21.82%. Given Ford Motor’s higher possible upside, research analysts clearly believe Ford Motor is more favorable than Adient PLC.

Dividends

Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 5.2%. Adient PLC does not pay a dividend. Ford Motor pays out 63.2% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Ford Motor and Adient PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ford Motor $153.60 billion 0.30 $13.99 billion $0.95 12.23
Adient PLC $16.21 billion 0.46 $976.00 million N/A N/A

Ford Motor has higher revenue and earnings than Adient PLC.

Profitability

This table compares Ford Motor and Adient PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ford Motor 2.52% 19.69% 2.52%
Adient PLC 5.63% 21.65% 7.56%

Summary

Ford Motor beats Adient PLC on 7 of the 13 factors compared between the two stocks.

Ford Motor Company Profile

Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.

Adient PLC Company Profile

Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.

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