Knorr-Bremse (OTCMKTS:KNRRY – Get Free Report) and American Axle & Manufacturing (NYSE:DCH – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Risk and Volatility
Knorr-Bremse has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500.
Earnings & Valuation
This table compares Knorr-Bremse and American Axle & Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Knorr-Bremse | $8.84 billion | 1.96 | $604.17 million | $1.06 | 25.34 |
| American Axle & Manufacturing | $8.22 billion | 0.14 | -$19.70 million | ($1.08) | -4.34 |
Knorr-Bremse has higher revenue and earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Knorr-Bremse, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Knorr-Bremse and American Axle & Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Knorr-Bremse | 7.37% | 18.30% | 6.53% |
| American Axle & Manufacturing | -2.01% | 15.94% | 2.03% |
Analyst Recommendations
This is a summary of current ratings and target prices for Knorr-Bremse and American Axle & Manufacturing, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Knorr-Bremse | 2 | 1 | 5 | 0 | 2.38 |
| American Axle & Manufacturing | 2 | 5 | 4 | 0 | 2.18 |
American Axle & Manufacturing has a consensus target price of $8.90, suggesting a potential upside of 89.68%. Given American Axle & Manufacturing’s higher possible upside, analysts clearly believe American Axle & Manufacturing is more favorable than Knorr-Bremse.
Insider and Institutional 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, hedge funds and endowments believe a company is poised for long-term growth.
Summary
Knorr-Bremse beats American Axle & Manufacturing on 10 of the 14 factors compared between the two stocks.
About Knorr-Bremse
Knorr-Bremse AG, together with its subsidiaries, engages in the development, production, marketing, and servicing of braking and other systems for rail and commercial vehicles worldwide. The company operates in two segments, Rail Vehicle Systems and Commercial Vehicle Systems. The Rail Vehicle Systems segment offers braking systems, entrance and HVAC systems, sanitary systems, coupling systems, digital solutions, smart services for optimizing rail traffic, power electrics, rail computing and communication (RCC)/TCMS, signaling systems, stationary and mobile testing equipment, windshield wiper and wash systems, and extensive aftermarket solutions. The Commercial Vehicle Systems segment provides pneumatic braking systems comprising brake control systems, disk brakes, drum brakes, brake cylinders, valves, and pedal units; steering systems; vehicle dynamics solutions, such as anti-lock braking systems and electronic stability programs; driver assistance systems; automated driving and electronic leveling control; energy supply and distribution systems, including compressors and air treatment products; and engine components and transmission control systems, such as vibration dampers, engine air management, transmission control, and gear/clutch actuation products for trucks, buses, trailers, and agricultural machinery. In addition, it offers leasing, holding, logistics, and media and IT services. The company was founded in 1905 and is headquartered in Munich, Germany. Knorr-Bremse AG is a subsidiary of KB Holding GmbH.
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.
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