Critical Analysis: IOCHPE MAXION S/S (OTCMKTS:IOCJY) & Aptiv (APTV)

Aptiv (NYSE:APTV) and IOCHPE MAXION S/S (OTCMKTS:IOCJY) are both business services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, profitability, dividends, valuation, analyst recommendations and earnings.

Insider & Institutional Ownership

95.7% of Aptiv shares are owned by institutional investors. 0.4% of Aptiv shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Aptiv and IOCHPE MAXION S/S, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Aptiv 1 3 14 1 2.79
IOCHPE MAXION S/S 0 0 0 0 N/A

Aptiv presently has a consensus price target of $92.80, suggesting a potential upside of 26.00%. Given Aptiv’s higher possible upside, research analysts plainly believe Aptiv is more favorable than IOCHPE MAXION S/S.

Dividends

Aptiv pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. IOCHPE MAXION S/S pays an annual dividend of $0.05 per share and has a dividend yield of 3.2%. Aptiv pays out 16.7% of its earnings in the form of a dividend.

Risk & Volatility

Aptiv has a beta of 1.79, suggesting that its stock price is 79% more volatile than the S&P 500. Comparatively, IOCHPE MAXION S/S has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Valuation and Earnings

This table compares Aptiv and IOCHPE MAXION S/S’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Aptiv $14.44 billion 1.32 $1.07 billion $5.26 14.00
IOCHPE MAXION S/S $2.35 billion 0.30 $2.00 million N/A N/A

Aptiv has higher revenue and earnings than IOCHPE MAXION S/S.

Profitability

This table compares Aptiv and IOCHPE MAXION S/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Aptiv 6.95% 35.66% 10.58%
IOCHPE MAXION S/S 1.38% 5.74% 1.91%

Summary

Aptiv beats IOCHPE MAXION S/S on 12 of the 15 factors compared between the two stocks.

Aptiv Company Profile

Aptiv PLC, together with its subsidiaries, designs and manufacturers vehicle components, and provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets worldwide. It operates through two segment, 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, electrical centers, and hybrid high voltage and safety distribution systems. The Advanced Safety and User Experience segment provides critical components, systems, and software development for passenger safety, security, comfort, and vehicle operation, such as body controls, infotainment and connectivity systems, active and passive safety electronics, autonomous driving software and technologies, and systems integration. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC is based in Dublin, Ireland.

IOCHPE MAXION S/S Company Profile

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for light and commercial vehicles in North America, South America, Europe, and internationally. It operates through two segments, Wheels and Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-up trucks, and SUVs, as well as light and medium-sized commercial vehicles; and light aluminum wheels for vehicles. It also provides heavy structural components, including frames, sidebars, and crossbars; and metal stampings for commercial vehicles, as well as agricultural machinery and aluminum wheels for light vehicles. In addition, the company offers light structural and automotive components, such as metal stampings for passenger vehicles, brake levers, pedal sets, welded assemblies, structural parts, and other automotive components. Further, it produces freight cars, railway wheels, and castings, as well as industrial castings and freight cars. Iochpe-Maxion S.A. was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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