Comparing Patrick Industries (NASDAQ:PATK) & Aisin Seiki (OTCMKTS:ASEKY)

Patrick Industries (NASDAQ:PATK) and Aisin Seiki (OTCMKTS:ASEKY) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.

Risk & Volatility

Patrick Industries has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500. Comparatively, Aisin Seiki has a beta of 0.55, suggesting that its share price is 45% less volatile than the S&P 500.

Dividends

Patrick Industries pays an annual dividend of $1.88 per share and has a dividend yield of 2.9%. Aisin Seiki pays an annual dividend of $0.29 per share and has a dividend yield of 2.0%. Patrick Industries pays out 44.5% of its earnings in the form of a dividend. Aisin Seiki pays out 20.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Patrick Industries has raised its dividend for 6 consecutive years. Patrick Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.74%	12.69%	4.69%
Aisin Seiki	3.14%	6.73%	3.68%

Insider & Institutional Ownership

93.3% of Patrick Industries shares are held by institutional investors. 3.8% of Patrick Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Patrick Industries and Aisin Seiki”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patrick Industries	$3.95 billion	0.52	$135.06 million	$4.22	15.25
Aisin Seiki	$34.00 billion	0.31	$1.13 billion	$1.45	9.86

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

Analyst Recommendations

This is a summary of recent recommendations for Patrick Industries and Aisin Seiki, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	1	2	7	0	2.60
Aisin Seiki	1	0	0	1	2.50

Patrick Industries presently has a consensus target price of $106.78, suggesting a potential upside of 65.96%. Given Patrick Industries’ stronger consensus rating and higher probable upside, equities analysts plainly believe Patrick Industries is more favorable than Aisin Seiki.

Summary

Patrick Industries beats Aisin Seiki on 14 of the 18 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.

About Aisin Seiki

Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.