Lear Corporation (LEA) vs. Its Rivals Critical Analysis
Lear Corporation (NYSE: LEA) is one of 32 publicly-traded companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its peers? We will compare Lear Corporation to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.
This table compares Lear Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Lear Corporation Competitors||-95.27%||3.29%||-1.03%|
Institutional and Insider Ownership
94.3% of Lear Corporation shares are owned by institutional investors. Comparatively, 71.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 0.5% of Lear Corporation shares are owned by insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Risk & Volatility
Lear Corporation has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Lear Corporation’s peers have a beta of 1.37, suggesting that their average stock price is 37% more volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Lear Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Lear Corporation Competitors||216||1033||1482||48||2.49|
Lear Corporation presently has a consensus target price of $155.67, suggesting a potential downside of 8.61%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 1.46%. Given Lear Corporation’s peers stronger consensus rating and higher possible upside, analysts clearly believe Lear Corporation has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Lear Corporation and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Lear Corporation||$19.29 billion||$1.97 billion||11.31|
|Lear Corporation Competitors||$5.85 billion||$698.05 million||15.11|
Lear Corporation has higher revenue and earnings than its peers. Lear Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Lear Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 1.2%. Lear Corporation pays out 13.3% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Lear Corporation has increased its dividend for 6 consecutive years.
Lear Corporation peers beat Lear Corporation on 8 of the 15 factors compared.
About Lear Corporation
Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company’s segments include Seating and E-Systems. The Company serves the automotive and light truck market. The Seating segment consists of the design, development, engineering, just-in-time assembly and delivery of complete seat systems, as well as the design, development, engineering and manufacture of all seat components, including seat covers and surface materials, such as leather and fabric, seat structures and mechanisms, seat foam and headrests. The E-Systems segment consists of the design, development, engineering, manufacture, assembly and supply of electrical distribution systems, electronic modules and related components and software for light vehicles across the world.
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