American Axle & Manufacturing (NYSE:DCH – 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, dividends, analyst recommendations, institutional ownership, valuation and profitability.
Volatility & Risk
American Axle & Manufacturing has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Lear has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and price targets for American Axle & Manufacturing and Lear, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 5 | 3 | 0 | 2.22 |
| Lear | 0 | 10 | 5 | 1 | 2.44 |
Institutional & Insider Ownership
91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 97.0% of Lear shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by company insiders. Comparatively, 1.0% of Lear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares American Axle & Manufacturing and Lear’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
| Lear | 2.35% | 14.18% | 4.88% |
Valuation and Earnings
This table compares American Axle & Manufacturing and Lear”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $5.84 billion | 0.28 | -$19.70 million | ($1.08) | -6.46 |
| Lear | $23.26 billion | 0.29 | $436.80 million | $10.73 | 12.55 |
Lear has higher revenue and earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Lear, indicating that it is currently the more affordable of the two stocks.
Summary
Lear beats American Axle & Manufacturing on 11 of the 15 factors compared between the two stocks.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.
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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