Critical Survey: Gentex (NASDAQ:GNTX) vs. Miller Industries (NYSE:MLR)

Gentex (NASDAQ:GNTX) and Miller Industries (NYSE:MLR) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, risk, earnings and institutional ownership.

Earnings & Valuation

This table compares Gentex and Miller Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentex	$2.31 billion	2.25	$404.49 million	$1.70	13.95
Miller Industries	$1.26 billion	0.37	$63.49 million	$3.66	10.96

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

Institutional & Insider Ownership

86.8% of Gentex shares are owned by institutional investors. Comparatively, 79.2% of Miller Industries shares are owned by institutional investors. 0.5% of Gentex shares are owned by insiders. Comparatively, 4.4% of Miller Industries shares are owned 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.

Volatility & Risk

Gentex has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.

Dividends

Gentex pays an annual dividend of $0.48 per share and has a dividend yield of 2.0%. Miller Industries pays an annual dividend of $0.80 per share and has a dividend yield of 2.0%. Gentex pays out 28.2% of its earnings in the form of a dividend. Miller Industries pays out 21.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Miller Industries has increased its dividend for 2 consecutive years.

Analyst Ratings

This is a breakdown of current ratings for Gentex and Miller Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentex	0	7	2	0	2.22
Miller Industries	0	2	1	0	2.33

Gentex presently has a consensus price target of $28.29, indicating a potential upside of 19.25%. Miller Industries has a consensus price target of $64.00, indicating a potential upside of 59.55%. Given Miller Industries’ stronger consensus rating and higher probable upside, analysts plainly believe Miller Industries is more favorable than Gentex.

Profitability

This table compares Gentex and Miller Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentex	15.61%	15.86%	13.87%
Miller Industries	4.35%	10.48%	6.33%

Summary

Gentex beats Miller Industries on 10 of the 17 factors compared between the two stocks.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.