Gentherm (NASDAQ:THRM – Get Free Report) and AB Volvo (OTCMKTS:VLVLY – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.
Institutional and Insider Ownership
97.1% of Gentherm shares are held by institutional investors. Comparatively, 0.0% of AB Volvo shares are held by institutional investors. 2.1% of Gentherm shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and target prices for Gentherm and AB Volvo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gentherm | 2 | 3 | 5 | 0 | 2.30 |
| AB Volvo | 2 | 6 | 0 | 2 | 2.20 |
Gentherm presently has a consensus price target of $43.57, suggesting a potential upside of 38.85%. Given Gentherm’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Gentherm is more favorable than AB Volvo.
Valuation and Earnings
This table compares Gentherm and AB Volvo”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gentherm | $1.60 billion | 1.03 | $18.28 million | $0.30 | 104.60 |
| AB Volvo | $48.98 billion | 1.30 | $3.52 billion | $2.04 | 15.34 |
AB Volvo has higher revenue and earnings than Gentherm. AB Volvo is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gentherm and AB Volvo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gentherm | 0.57% | 10.30% | 5.05% |
| AB Volvo | 8.12% | 21.50% | 5.84% |
Volatility and Risk
Gentherm has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, AB Volvo has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.
Summary
AB Volvo beats Gentherm on 8 of the 15 factors compared between the two stocks.
About Gentherm
Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.
About AB Volvo
AB Volvo (publ), together with its subsidiaries, manufactures and sells trucks, buses, construction equipment, and marine and industrial engines in Europe, the United States, Asia, Africa, and Oceania. The company provides heavy-duty trucks for long-haulage and construction work and light-duty trucks for distribution purposes under the Volvo, Renault Trucks, Mack, Eicher, and Dongfeng Trucks brands; and city and intercity buses, coaches, and chassis under the Prevost and Volvo Bus brands. It offers road construction machine, haulers, wheel loaders, excavators, and compact equipment. In addition, the company offers engines and power solutions for leisure and commercial vessels, as well as for power generation, industrial, and off-highway applications under the Volvo Penta brand name. Further, it provides financing, insurance, rental, spare parts, repairs, preventive maintenance, service agreement, and assistance services. The company offers its products and services through a network of dealerships and workshops. It has a strategic alliance with Isuzu Motors within commercial vehicles; a partnership with Samsung SDI Co to develop batteries for its electric products; and an agreement with Aurora to develop autonomous trucks. AB Volvo (publ) was incorporated in 1915 and is headquartered in Gothenburg, Sweden.
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