Holley (NYSE:HLLY – Get Free Report) and Lear (NYSE:LEA – Get Free Report) are both consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, earnings, valuation, institutional ownership, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Holley and Lear”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Holley | $613.51 million | 0.52 | $19.17 million | $0.08 | 32.69 |
| Lear | $23.26 billion | 0.25 | $436.80 million | $10.73 | 11.04 |
Lear has higher revenue and earnings than Holley. Lear is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Holley and Lear, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Holley | 1 | 3 | 3 | 0 | 2.29 |
| Lear | 0 | 12 | 3 | 1 | 2.31 |
Holley currently has a consensus target price of $4.90, indicating a potential upside of 87.38%. Lear has a consensus target price of $143.58, indicating a potential upside of 21.20%. Given Holley’s higher possible upside, equities analysts clearly believe Holley is more favorable than Lear.
Volatility & Risk
Holley has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.
Insider and Institutional Ownership
39.7% of Holley shares are owned by institutional investors. Comparatively, 97.0% of Lear shares are owned by institutional investors. 4.9% of Holley shares are owned by insiders. Comparatively, 1.0% of Lear shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Holley and Lear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Holley | 1.68% | 8.41% | 3.23% |
| Lear | 2.35% | 14.18% | 4.88% |
Summary
Lear beats Holley on 9 of the 14 factors compared between the two stocks.
About Holley
Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.
About Lear
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.
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