Head-To-Head Contrast: Patrick Industries (NASDAQ:PATK) vs. Gentherm (NASDAQ:THRM)

Gentherm (NASDAQ:THRM) and Patrick Industries (NASDAQ:PATK) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, profitability, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of recent recommendations for Gentherm and Patrick Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	2	3	5	0	2.30
Patrick Industries	0	2	8	0	2.80

Gentherm currently has a consensus target price of $43.57, indicating a potential upside of 47.38%. Patrick Industries has a consensus target price of $102.11, indicating a potential upside of 27.13%. Given Gentherm’s higher possible upside, equities research analysts plainly believe Gentherm is more favorable than Patrick Industries.

Volatility and Risk

Gentherm has a beta of 1.45, meaning that its share price is 45% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 1.21, meaning that its share price is 21% more volatile than the S&P 500.

Earnings & Valuation

This table compares Gentherm and Patrick Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.50 billion	1.04	$18.28 million	$0.30	98.55
Patrick Industries	$3.95 billion	0.65	$135.06 million	$3.85	20.86

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

Profitability

This table compares Gentherm and Patrick Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentherm	0.57%	10.30%	5.05%
Patrick Industries	3.38%	12.61%	4.61%

Insider & Institutional Ownership

97.1% of Gentherm shares are held by institutional investors. Comparatively, 93.3% of Patrick Industries shares are held by institutional investors. 2.1% of Gentherm shares are held by company insiders. Comparatively, 3.8% of Patrick Industries shares are held 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.

Summary

Patrick Industries beats Gentherm on 8 of the 14 factors compared between the two stocks.

About Gentherm

Gentherm Inc. develops and manufactures thermal management technologies for the automotive and medical industries. Its automotive products help regulate temperature and comfort in vehicle interiors, including heated and ventilated seating, heated steering wheels, and other climate-control systems. The company also provides temperature-management products for healthcare, including systems used to warm or cool patients in clinical settings. Gentherm serves automotive manufacturers and healthcare customers in markets around the world.

About Patrick Industries

Patrick Industries, Inc. is a manufacturer and distributor of component products and building materials for recreational vehicles, marine products, manufactured housing, and other markets. Founded in 1959 and headquartered in Elkhart, Indiana, the company supplies products used in the construction and furnishing of vehicles, homes, and industrial applications. Its offerings include cabinetry, countertops, flooring, insulation, furniture, fabricated metal products, laminates, and other interior and structural components.