Adient (NYSE:ADNT) and Horizon Global (NYSE:HZN) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, valuation, earnings, profitability, institutional ownership and dividends.

Risk & Volatility

Adient has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Horizon Global has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Dividends

Adient pays an annual dividend of $1.10 per share and has a dividend yield of 5.0%. Horizon Global does not pay a dividend. Adient pays out 19.6% of its earnings in the form of a dividend.

Profitability

This table compares Adient and Horizon Global’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Adient -9.66% 13.51% 4.33%
Horizon Global -20.37% -2.41% -0.22%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Adient and Horizon Global, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Adient 2 8 2 0 2.00
Horizon Global 1 3 2 0 2.17

Adient currently has a consensus target price of $41.25, indicating a potential upside of 85.73%. Horizon Global has a consensus target price of $12.33, indicating a potential upside of 566.67%. Given Horizon Global’s stronger consensus rating and higher possible upside, analysts plainly believe Horizon Global is more favorable than Adient.

Valuation & Earnings

This table compares Adient and Horizon Global’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Adient $17.44 billion 0.12 -$1.69 billion $5.62 3.95
Horizon Global $892.98 million 0.05 -$3.55 million $0.98 1.89

Horizon Global has lower revenue, but higher earnings than Adient. Horizon Global is trading at a lower price-to-earnings ratio than Adient, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

74.9% of Horizon Global shares are held by institutional investors. 0.1% of Adient shares are held by company insiders. Comparatively, 1.9% of Horizon Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Adient beats Horizon Global on 8 of the 15 factors compared between the two stocks.

Adient Company Profile

Adient plc designs, manufactures, and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company operates through two segments, Seating and Interiors. The Seating segment produces automotive seat metal structures and mechanisms, foams, trims, fabrics, and seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trims, and other products. The company operates in the Americas, Europe, China, and internationally. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.

Horizon Global Company Profile

Horizon Global Corporation designs, manufactures, and distributes a range of towing, trailering, cargo management, and other related accessory products to the automotive aftermarket, retail, and original equipment channels worldwide. It operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. The company provides towing products, such as hitches, fifth wheels, gooseneck hitches, weight distribution systems, wiring harnesses, draw bars, ball mounts, crossbars, towbars, security, and other towing accessories for attaching a trailer, camper, etc. It also offers trailering products, including brake controls, jacks, winches, couplers, interior and exterior vehicle lighting, and brake replacement parts. In addition, the company provides cargo management products, such as bike racks, roof cross bar systems, cargo carriers, luggage boxes, car interior protective products, ropes, tie-downs, tarps, bungee cords, loading ramps, and interior travel organizers. Further, it offers other products comprising tubular push and sports bars, side steps, skid plates, and oil pans. Horizon Global Corporation provides its products under the Reese, Hayman-Reese, Draw-Tite, and Westfalia, as well as Aqua Clear, Bulldog, BTM, DHF, Engetran, Fulton, Kovil, Parkside, Reese Secure, Reese Explorer, Reese Power Sports, Reese Towpower, ROLA, Tekonsha, Trojan, WesBarg, and Witter Towbar Systems brands. The company offers its products through original equipment manufacturers and suppliers, as well as aftermarket and retail customers in the agricultural, automotive, construction, fleet, horse/livestock, industrial, marine, military, recreational, trailer, and utility markets, and mining and municipalities; and serves end consumers through independent installers, warehouse distributors, dealers, original equipment, retail stores, and online retailers. Horizon Global Corporation was incorporated in 2015 is headquartered in Troy, Michigan.

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