Patrick Industries (NASDAQ:PATK – Get Free Report) and Gentherm (NASDAQ:THRM – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Profitability
This table compares Patrick Industries and Gentherm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Patrick Industries | 3.74% | 12.69% | 4.69% |
| Gentherm | 0.57% | 10.30% | 5.05% |
Analyst Ratings
This is a breakdown of current ratings for Patrick Industries and Gentherm, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Patrick Industries | 1 | 1 | 7 | 0 | 2.67 |
| Gentherm | 2 | 3 | 5 | 0 | 2.30 |
Patrick Industries presently has a consensus price target of $103.00, suggesting a potential upside of 25.99%. Gentherm has a consensus price target of $43.57, suggesting a potential upside of 38.85%. Given Gentherm’s higher probable upside, analysts plainly believe Gentherm is more favorable than Patrick Industries.
Risk and Volatility
Patrick Industries has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.37, meaning that its share price is 37% more volatile than the S&P 500.
Earnings & Valuation
This table compares Patrick Industries and Gentherm”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Patrick Industries | $3.95 billion | 0.66 | $135.06 million | $3.85 | 21.23 |
| Gentherm | $1.50 billion | 0.64 | $18.28 million | $0.30 | 104.60 |
Patrick Industries has higher revenue and earnings than Gentherm. Patrick Industries is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
93.3% of Patrick Industries shares are held by institutional investors. Comparatively, 97.1% of Gentherm shares are held by institutional investors. 3.8% of Patrick Industries shares are held by insiders. Comparatively, 2.1% of Gentherm shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Patrick Industries beats Gentherm on 10 of the 14 factors compared between the two stocks.
About Patrick Industries
Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.
About Gentherm
Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.
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