Financial Survey: Patrick Industries (NASDAQ:PATK) vs. Aptiv (NYSE:APTV)

Patrick Industries (NASDAQ:PATK) and Aptiv (NYSE:APTV) are both mid-cap consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and price targets for Patrick Industries and Aptiv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	0	2	8	0	2.80
Aptiv	1	7	16	1	2.68

Patrick Industries presently has a consensus price target of $102.11, indicating a potential upside of 26.38%. Aptiv has a consensus price target of $67.75, indicating a potential upside of 75.06%. Given Aptiv’s higher possible upside, analysts clearly believe Aptiv is more favorable than Patrick Industries.

Institutional & Insider Ownership

93.3% of Patrick Industries shares are owned by institutional investors. Comparatively, 94.2% of Aptiv shares are owned by institutional investors. 3.8% of Patrick Industries shares are owned by insiders. Comparatively, 0.1% of Aptiv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Patrick Industries and Aptiv”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patrick Industries	$3.95 billion	0.66	$135.06 million	$3.85	20.99
Aptiv	$20.40 billion	0.38	$165.00 million	$3.63	10.66

Aptiv has higher revenue and earnings than Patrick Industries. Aptiv is trading at a lower price-to-earnings ratio than Patrick Industries, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Patrick Industries and Aptiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.38%	12.61%	4.61%
Aptiv	4.60%	15.44%	6.63%

Volatility and Risk

Patrick Industries has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Aptiv has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

Summary

Aptiv beats Patrick Industries on 10 of the 15 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. is a manufacturer and distributor of component products and building materials for recreational vehicles, marine products, manufactured housing, and other markets. Founded in 1959 and headquartered in Elkhart, Indiana, the company supplies products used in the construction and furnishing of vehicles, homes, and industrial applications. Its offerings include cabinetry, countertops, flooring, insulation, furniture, fabricated metal products, laminates, and other interior and structural components.

About Aptiv

Aptiv plc is a global automotive technology supplier that develops software, electrical systems and components for vehicle manufacturers. Its products and services support vehicle connectivity, safety, electrification and automation. The company’s offerings include vehicle electrical architectures, wiring and connection systems, advanced driver-assistance technologies, and software and computing platforms. Aptiv serves automakers and other customers across multiple regions worldwide. Aptiv took its current name in 2017, when Delphi Automotive separated its powertrain business, which became Delphi Technologies.