Fox Factory (NASDAQ:FOXXW) versus American Axle & Manufacturing (NYSE:DCH) Critical Survey

American Axle & Manufacturing (NYSE:DCH) and Fox Factory (NASDAQ:FOXXW) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for American Axle & Manufacturing and Fox Factory, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Axle & Manufacturing	1	3	2	0	2.17
Fox Factory	0	0	0	0	0.00

American Axle & Manufacturing currently has a consensus target price of $10.25, indicating a potential upside of 53.79%. Given American Axle & Manufacturing’s stronger consensus rating and higher possible upside, equities analysts clearly believe American Axle & Manufacturing is more favorable than Fox Factory.

Valuation & Earnings

This table compares American Axle & Manufacturing and Fox Factory”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Axle & Manufacturing	$6.80 billion	0.23	-$19.70 million	($0.76)	-8.77
Fox Factory	$59.54 million	N/A	N/A	N/A	N/A

Fox Factory has lower revenue, but higher earnings than American Axle & Manufacturing.

Institutional and Insider Ownership

91.4% of American Axle & Manufacturing shares are held by institutional investors. 2.1% of American Axle & Manufacturing shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares American Axle & Manufacturing and Fox Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
American Axle & Manufacturing	-1.87%	13.65%	1.69%
Fox Factory	N/A	N/A	N/A

Summary

American Axle & Manufacturing beats Fox Factory on 8 of the 9 factors compared between the two stocks.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.