Critical Survey: Adient (ADNT) versus Ford Motor (F)
Adient (NYSE: ADNT) and Ford Motor (NYSE:F) are both mid-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
This is a summary of current ratings for Adient and Ford Motor, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Adient currently has a consensus target price of $74.43, indicating a potential downside of 5.07%. Ford Motor has a consensus target price of $12.38, indicating a potential downside of 1.59%. Given Ford Motor’s higher possible upside, analysts plainly believe Ford Motor is more favorable than Adient.
Earnings and Valuation
This table compares Adient and Ford Motor’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Adient||$16.21 billion||0.45||$877.00 million||$9.47||8.28|
|Ford Motor||$141.55 billion||0.35||$4.60 billion||$1.10||11.44|
Ford Motor has higher revenue and earnings than Adient. Adient is trading at a lower price-to-earnings ratio than Ford Motor, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
92.7% of Adient shares are owned by institutional investors. Comparatively, 53.8% of Ford Motor shares are owned by institutional investors. 0.1% of Adient shares are owned by company insiders. Comparatively, 1.1% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Adient pays an annual dividend of $1.10 per share and has a dividend yield of 1.4%. Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 4.8%. Adient pays out 11.6% of its earnings in the form of a dividend. Ford Motor pays out 54.5% 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.
This table compares Adient and Ford Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Adient beats Ford Motor on 9 of the 15 factors compared between the two stocks.
Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.
About Ford Motor
Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.
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