Lear Corporation (NYSE: LEA) is one of 32 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it weigh in compared to its rivals? We will compare Lear Corporation to related companies based on the strength of its analyst recommendations, institutional ownership, dividends, risk, profitability, earnings and valuation.

Valuation and Earnings

This table compares Lear Corporation and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Lear Corporation $19.29 billion $1.97 billion 11.63
Lear Corporation Competitors $5.85 billion $698.05 million 15.63

Lear Corporation has higher revenue and earnings than its rivals. Lear Corporation is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Dividends

Lear Corporation pays an annual dividend of $2.00 per share and has a dividend yield of 1.1%. Lear Corporation pays out 13.3% of its earnings in the form of a dividend. As a group, “Auto, Truck & Motorcycle Parts” companies pay a dividend yield of 1.4% and pay out 21.6% of their earnings in the form of a dividend. Lear Corporation has increased its dividend for 6 consecutive years.

Profitability

This table compares Lear Corporation and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lear Corporation 5.51% 32.34% 10.51%
Lear Corporation Competitors -95.27% 3.29% -1.03%

Volatility and Risk

Lear Corporation has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Lear Corporation’s rivals have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Lear Corporation and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lear Corporation 3 4 7 0 2.29
Lear Corporation Competitors 143 883 1416 37 2.54

Lear Corporation presently has a consensus target price of $160.00, suggesting a potential downside of 8.62%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential downside of 0.25%. Given Lear Corporation’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Lear Corporation has less favorable growth aspects than its rivals.

Institutional and Insider Ownership

94.3% of Lear Corporation shares are owned by institutional investors. Comparatively, 67.9% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by institutional investors. 0.5% of Lear Corporation shares are owned by insiders. Comparatively, 15.2% of shares of all “Auto, Truck & Motorcycle Parts” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Lear Corporation rivals beat Lear Corporation on 8 of the 15 factors compared.

About Lear Corporation

Lear Corporation (Lear) is a supplier to the global automotive industry. The Company is engaged in supplying seating, electrical distribution systems and electronic modules, as well as related sub-systems, components and software, to automotive manufacturers. The Company’s segments include Seating and E-Systems. The Company serves the automotive and light truck market. The Seating segment consists of the design, development, engineering, just-in-time assembly and delivery of complete seat systems, as well as the design, development, engineering and manufacture of all seat components, including seat covers and surface materials, such as leather and fabric, seat structures and mechanisms, seat foam and headrests. The E-Systems segment consists of the design, development, engineering, manufacture, assembly and supply of electrical distribution systems, electronic modules and related components and software for light vehicles across the world.

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