Nokian Renkaat Oyj (OTCMKTS:NKRKY) versus Lear (NYSE:LEA) Financial Comparison

Lear (NYSE:LEA) and Nokian Renkaat Oyj (OTCMKTS:NKRKY) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, valuation, risk and earnings.

Institutional & Insider Ownership

97.0% of Lear shares are owned by institutional investors. Comparatively, 0.2% of Nokian Renkaat Oyj shares are owned by institutional investors. 1.0% of Lear shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Lear and Nokian Renkaat Oyj”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lear	$23.26 billion	0.27	$436.80 million	$10.73	11.67
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.45	19.31

Lear has higher revenue and earnings than Nokian Renkaat Oyj. Lear is trading at a lower price-to-earnings ratio than Nokian Renkaat Oyj, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lear and Nokian Renkaat Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lear	2.35%	14.18%	4.88%
Nokian Renkaat Oyj	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations for Lear and Nokian Renkaat Oyj, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lear	0	10	5	1	2.44
Nokian Renkaat Oyj	0	1	0	0	2.00

Lear presently has a consensus price target of $145.23, indicating a potential upside of 15.99%. Given Lear’s stronger consensus rating and higher possible upside, analysts clearly believe Lear is more favorable than Nokian Renkaat Oyj.

Summary

Lear beats Nokian Renkaat Oyj on 11 of the 12 factors compared between the two stocks.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.