Halfords Group (OTCMKTS:HLFDY) and Aptiv (NYSE:APTV) Critical Analysis

Aptiv (NYSE:APTV) and Halfords Group (OTCMKTS:HLFDY) are both auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.

Institutional & Insider Ownership

94.2% of Aptiv shares are owned by institutional investors. 0.5% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Aptiv and Halfords Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$19.71 billion	0.84	$1.79 billion	$1.26	60.69
Halfords Group	$2.19 billion	0.19	-$42.87 million	N/A	N/A

Aptiv has higher revenue and earnings than Halfords Group.

Analyst Ratings

This is a summary of current ratings for Aptiv and Halfords Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	1	6	14	3	2.79
Halfords Group	0	0	0	0	0.00

Aptiv currently has a consensus price target of $95.42, indicating a potential upside of 24.79%. Given Aptiv’s stronger consensus rating and higher possible upside, equities analysts plainly believe Aptiv is more favorable than Halfords Group.

Profitability

This table compares Aptiv and Halfords Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aptiv	1.46%	18.51%	7.38%
Halfords Group	N/A	N/A	N/A

Volatility and Risk

Aptiv has a beta of 1.51, meaning that its share price is 51% more volatile than the S&P 500. Comparatively, Halfords Group has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Summary

Aptiv beats Halfords Group on 13 of the 13 factors compared between the two stocks.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, Signal and Power Solutions, and Advanced Safety and User Experience. The Signal and Power Solutions segment designs, manufactures, and assembles vehicle’s electrical architecture, including engineered component products, connectors, wiring assemblies and harnesses, cable management products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

About Halfords Group

Halfords Group plc, through its subsidiaries, provides motoring and cycling products and services in the United Kingdom and the Republic of Ireland. The company operates through two segments, Retail and Car Servicing. The Retail segment is involved in the retail of automotive, leisure, cycling products and accessories, auto parts, and accessories through its stores and online. The Car Servicing segment provides car servicing and repair services from garages and mobile vans. The company also provides software as a service. Halfords Group plc was founded in 1892 and is based in Redditch, the United Kingdom.