Aptiv (NYSE:APTV – Get Free Report) and Knorr-Bremse (OTCMKTS:KNRRY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.
Analyst Recommendations
This is a summary of current ratings and price targets for Aptiv and Knorr-Bremse, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aptiv | 2 | 4 | 17 | 1 | 2.71 |
| Knorr-Bremse | 2 | 1 | 5 | 0 | 2.38 |
Aptiv currently has a consensus target price of $72.60, suggesting a potential upside of 64.98%. Given Aptiv’s stronger consensus rating and higher probable upside, analysts clearly believe Aptiv is more favorable than Knorr-Bremse.
Valuation and Earnings
This table compares Aptiv and Knorr-Bremse”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aptiv | $20.52 billion | 0.45 | $165.00 million | $1.06 | 41.51 |
| Knorr-Bremse | $8.84 billion | 1.93 | $604.17 million | $1.06 | 25.03 |
Knorr-Bremse has lower revenue, but higher earnings than Aptiv. Knorr-Bremse 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. 0.1% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Aptiv and Knorr-Bremse’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aptiv | 1.17% | 17.10% | 7.03% |
| Knorr-Bremse | 7.37% | 18.30% | 6.53% |
Risk and Volatility
Aptiv has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, Knorr-Bremse has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500.
Dividends
Aptiv pays an annual dividend of $0.88 per share and has a dividend yield of 2.0%. Knorr-Bremse pays an annual dividend of $0.33 per share and has a dividend yield of 1.2%. Aptiv pays out 83.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Knorr-Bremse pays out 31.1% of its earnings in the form of a dividend.
Summary
Aptiv beats Knorr-Bremse on 11 of the 16 factors compared between the two stocks.
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.
About Knorr-Bremse
Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.
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