Fox Factory (NASDAQ:FOXF – Get Free Report) and Aptiv (NYSE:APTV – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.
Profitability
This table compares Fox Factory and Aptiv’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Fox Factory | -20.39% | 5.57% | 2.37% |
| Aptiv | 1.17% | 17.10% | 7.03% |
Valuation and Earnings
This table compares Fox Factory and Aptiv”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Fox Factory | $1.47 billion | 0.62 | -$544.58 million | ($7.14) | -3.03 |
| Aptiv | $20.40 billion | 0.48 | $165.00 million | $1.06 | 44.69 |
Aptiv has higher revenue and earnings than Fox Factory. Fox Factory is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
94.2% of Aptiv shares are owned by institutional investors. 0.9% of Fox Factory shares are owned by insiders. Comparatively, 0.1% of Aptiv shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for Fox Factory and Aptiv, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Fox Factory | 2 | 2 | 1 | 1 | 2.17 |
| Aptiv | 2 | 3 | 19 | 0 | 2.71 |
Fox Factory currently has a consensus price target of $21.00, indicating a potential downside of 3.00%. Aptiv has a consensus price target of $76.50, indicating a potential upside of 61.48%. Given Aptiv’s stronger consensus rating and higher probable upside, analysts clearly believe Aptiv is more favorable than Fox Factory.
Volatility and Risk
Fox Factory has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.46, indicating that its stock price is 46% more volatile than the S&P 500.
Summary
Aptiv beats Fox Factory on 12 of the 15 factors compared between the two stocks.
About Fox Factory
Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.
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.
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