HELLA GmbH & Co. KGaA (OTCMKTS:HLLGY) and Gentex (NASDAQ:GNTX) Critical Review

HELLA GmbH & Co. KGaA (OTCMKTS:HLLGY) and Gentex (NASDAQ:GNTX) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, earnings, risk and analyst recommendations.

Profitability

This table compares HELLA GmbH & Co. KGaA and Gentex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HELLA GmbH & Co. KGaA	N/A	N/A	N/A
Gentex	15.50%	16.78%	14.18%

Analyst Ratings

This is a summary of current recommendations and price targets for HELLA GmbH & Co. KGaA and Gentex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HELLA GmbH & Co. KGaA	0	0	0	0	0.00
Gentex	0	7	1	0	2.12

Gentex has a consensus target price of $26.80, suggesting a potential upside of 13.18%. Given Gentex’s stronger consensus rating and higher probable upside, analysts plainly believe Gentex is more favorable than HELLA GmbH & Co. KGaA.

Valuation and Earnings

This table compares HELLA GmbH & Co. KGaA and Gentex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HELLA GmbH & Co. KGaA	N/A	N/A	N/A	N/A	N/A
Gentex	$2.53 billion	1.99	$384.84 million	$1.89	12.53

Gentex has higher revenue and earnings than HELLA GmbH & Co. KGaA.

Institutional & Insider Ownership

86.8% of Gentex shares are owned by institutional investors. 0.6% of Gentex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Gentex beats HELLA GmbH & Co. KGaA on 9 of the 9 factors compared between the two stocks.

About HELLA GmbH & Co. KGaA

HELLA GmbH & Co. KGaA, together with its subsidiaries, develops, manufactures, and sells lighting systems and electronic components for automotive industry worldwide. It operates through three segments: Lighting, Electronics, and Lifecycle Solutions. The Lighting segment offers headlamps, rear combination lamps, and car body lighting including radomes, illuminated logos, and front phygital shields, as well as interior lighting products. The Electronics segment provides automated driving products, such as radar sensors and steering electronics; sensors and actuators; body electronics, including lighting electronics and access systems; and energy management products. The Lifecycle Solutions segment offers vehicle diagnostics, emissions testing, battery testing, light adjustment, and calibration service, as well as data-based services; and sells wear parts, spare parts, and accessories to dealers and independent workshops. This segment develops, manufactures, and distributes lighting and electronic products for special vehicles comprising construction and agricultural machinery, buses, and motor homes, as well as marine sectors. The company was formerly known as HELLA KGaA Hueck & Co. and changed its name to HELLA GmbH & Co. KGaA in October 2017. HELLA GmbH & Co. KGaA was founded in 1899 and is headquartered in Lippstadt, Germany. HELLA GmbH & Co. KGaA operates as a subsidiary of Forvia Germany Gmbh.

About Gentex

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, Republic of Korea, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. It sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.