Miller Industries (NYSE:MLR) versus Gentherm (NASDAQ:THRM) Critical Comparison

Gentherm (NASDAQ:THRM) and Miller Industries (NYSE:MLR) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Gentherm and Miller Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gentherm	0	3	2	1	2.67
Miller Industries	0	2	1	0	2.33

Gentherm currently has a consensus price target of $43.00, suggesting a potential upside of 11.00%. Miller Industries has a consensus price target of $55.00, suggesting a potential upside of 39.12%. Given Miller Industries’ higher possible upside, analysts plainly believe Miller Industries is more favorable than Gentherm.

Profitability

This table compares Gentherm and Miller Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gentherm	2.08%	9.55%	4.80%
Miller Industries	3.59%	7.32%	4.76%

Earnings and Valuation

This table compares Gentherm and Miller Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gentherm	$1.46 billion	0.81	$64.95 million	$1.00	38.74
Miller Industries	$1.26 billion	0.36	$63.49 million	$2.60	15.21

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

Risk & Volatility

Gentherm has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.24, meaning that its stock price is 24% more volatile than the S&P 500.

Insider and Institutional Ownership

97.1% of Gentherm shares are owned by institutional investors. Comparatively, 79.2% of Miller Industries shares are owned by institutional investors. 1.4% of Gentherm shares are owned by insiders. Comparatively, 4.4% of Miller Industries 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

Gentherm beats Miller Industries on 11 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 Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.