Denso (OTCMKTS:DNZOY – Get Free Report) and American Axle & Manufacturing (NYSE:DCH – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.
Insider & Institutional Ownership
91.4% of American Axle & Manufacturing shares are held by institutional investors. 2.1% of American Axle & Manufacturing shares are held by company 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.
Analyst Recommendations
This is a summary of current ratings and target prices for Denso and American Axle & Manufacturing, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Denso | 0 | 3 | 0 | 0 | 2.00 |
| American Axle & Manufacturing | 2 | 5 | 4 | 0 | 2.18 |
American Axle & Manufacturing has a consensus price target of $8.57, indicating a potential upside of 85.23%. Given American Axle & Manufacturing’s stronger consensus rating and higher probable upside, analysts clearly believe American Axle & Manufacturing is more favorable than Denso.
Profitability
This table compares Denso and American Axle & Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Denso | 5.57% | 7.74% | 4.89% |
| American Axle & Manufacturing | -2.28% | 15.93% | 2.06% |
Earnings and Valuation
This table compares Denso and American Axle & Manufacturing”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Denso | $50.09 billion | 0.70 | $2.93 billion | $1.03 | 11.62 |
| American Axle & Manufacturing | $9.63 billion | 0.11 | -$19.70 million | ($1.34) | -3.45 |
Denso has higher revenue and earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Denso, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Denso has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
About Denso
DENSO Corporation is a Japanese mobility and automotive technology supplier that develops and manufactures components and systems for vehicle makers and other customers. Its products include thermal systems, powertrain and electrification components, automotive electronics, and technologies for vehicle safety and mobility. Founded in 1949 as Nippon Denso Co., Ltd., the company became independent from Toyota Motor Corporation and later adopted the name DENSO Corporation. It is headquartered in Kariya, Aichi Prefecture, Japan.
About American Axle & Manufacturing
American Axle & Manufacturing (AAM) designs and manufactures driveline and metal-forming products for the automotive and mobility industries. Its products include axles, driveshafts, differentials, transfer cases, electric-drive systems and related components used in a range of vehicles. Founded in 1994 from former General Motors axle and foundry operations, AAM is headquartered in Detroit, Michigan, and serves automakers and other customers through operations in North America, South America, Europe and Asia.
Receive News & Ratings for Denso Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Denso and related companies with MarketBeat.com's FREE daily email newsletter.
