Critical Comparison: Miller Industries (NYSE:MLR) and PHINIA (NYSE:PHIN)

Miller Industries (NYSE:MLR) and PHINIA (NYSE:PHIN) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Dividends

Miller Industries pays an annual dividend of $0.84 per share and has a dividend yield of 1.8%. PHINIA pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. Miller Industries pays out 62.7% of its earnings in the form of a dividend. PHINIA pays out 33.5% 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. Miller Industries has increased its dividend for 2 consecutive years and PHINIA has increased its dividend for 2 consecutive years.

Insider & Institutional Ownership

79.2% of Miller Industries shares are held by institutional investors. Comparatively, 90.9% of PHINIA shares are held by institutional investors. 4.5% of Miller Industries shares are held by company insiders. Comparatively, 2.2% of PHINIA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Miller Industries and PHINIA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$790.27 million	0.69	$23.01 million	$1.34	35.59
PHINIA	$3.48 billion	0.84	$130.00 million	$3.58	22.16

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

Analyst Ratings

This is a summary of recent ratings and price targets for Miller Industries and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
PHINIA	0	4	4	1	2.67

Miller Industries currently has a consensus target price of $50.00, indicating a potential upside of 4.85%. PHINIA has a consensus target price of $68.80, indicating a potential downside of 13.26%. Given Miller Industries’ higher probable upside, equities research analysts clearly believe Miller Industries is more favorable than PHINIA.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Miller Industries	2.08%	3.70%	2.58%
PHINIA	3.96%	13.23%	5.42%

Volatility & Risk

Miller Industries has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

PHINIA beats Miller Industries on 13 of the 17 factors compared between the two stocks.

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.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.