Head-To-Head Survey: Aptiv (NYSE:APTV) and Knorr-Bremse (OTCMKTS:KNRRY)

Knorr-Bremse (OTCMKTS:KNRRY) and Aptiv (NYSE:APTV) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares Knorr-Bremse and Aptiv”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Knorr-Bremse	$8.84 billion	1.83	$604.17 million	$1.06	23.73
Aptiv	$20.40 billion	0.45	$165.00 million	$1.06	41.41

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

Profitability

This table compares Knorr-Bremse and Aptiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Knorr-Bremse	7.72%	19.26%	6.90%
Aptiv	1.17%	17.10%	7.03%

Insider and Institutional Ownership

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

Risk & Volatility

Knorr-Bremse has a beta of 0.56, indicating that its stock price is 44% less 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Knorr-Bremse and Aptiv, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Knorr-Bremse	2	1	5	0	2.38
Aptiv	2	4	17	1	2.71

Aptiv has a consensus target price of $72.60, indicating a potential upside of 65.40%. Given Aptiv’s stronger consensus rating and higher possible upside, analysts clearly believe Aptiv is more favorable than Knorr-Bremse.

Summary

Aptiv beats Knorr-Bremse on 10 of the 14 factors compared between the two stocks.

About Knorr-Bremse

Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.