Nokian Renkaat Oyj (OTCMKTS:NKRKF) & Aptiv (NYSE:APTV) Head to Head Review

Aptiv (NYSE:APTV) and Nokian Renkaat Oyj (OTCMKTS:NKRKF) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, earnings, valuation, institutional ownership, risk and dividends.

Profitability

This table compares Aptiv and Nokian Renkaat Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aptiv	1.17%	17.10%	7.03%
Nokian Renkaat Oyj	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for Aptiv and Nokian Renkaat Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	2	3	19	0	2.71
Nokian Renkaat Oyj	0	0	1	0	3.00

Aptiv presently has a consensus target price of $76.50, suggesting a potential upside of 62.73%. Given Aptiv’s higher probable upside, analysts clearly believe Aptiv is more favorable than Nokian Renkaat Oyj.

Earnings & Valuation

This table compares Aptiv and Nokian Renkaat Oyj”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$20.40 billion	0.48	$165.00 million	$1.06	44.35
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.89	19.51

Aptiv has higher revenue and earnings than Nokian Renkaat Oyj. Nokian Renkaat Oyj is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

94.2% of Aptiv shares are held by institutional investors. Comparatively, 34.8% of Nokian Renkaat Oyj shares are held by institutional investors. 0.1% of Aptiv shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Aptiv beats Nokian Renkaat Oyj on 10 of the 11 factors compared between the two stocks.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.