Analyzing American Axle & Manufact. (NYSE:AXL) and Puradyn Filter Technologies (NYSE:PFTI)

Puradyn Filter Technologies (OTCMKTS:PFTI) and American Axle & Manufact. (NYSE:AXL) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Puradyn Filter Technologies and American Axle & Manufact.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Puradyn Filter Technologies -14.36% N/A -24.87%
American Axle & Manufact. -1.48% 18.62% 3.91%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Puradyn Filter Technologies and American Axle & Manufact., as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Puradyn Filter Technologies 0 0 0 0 N/A
American Axle & Manufact. 1 3 7 0 2.55

American Axle & Manufact. has a consensus price target of $17.50, indicating a potential upside of 41.36%. Given American Axle & Manufact.’s higher probable upside, analysts clearly believe American Axle & Manufact. is more favorable than Puradyn Filter Technologies.

Institutional & Insider Ownership

98.6% of American Axle & Manufact. shares are held by institutional investors. 37.3% of Puradyn Filter Technologies shares are held by insiders. Comparatively, 1.3% of American Axle & Manufact. shares are held by 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 Puradyn Filter Technologies and American Axle & Manufact.’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Puradyn Filter Technologies $4.20 million 0.62 -$220,000.00 N/A N/A
American Axle & Manufact. $7.27 billion 0.19 -$57.50 million $3.28 3.77

Puradyn Filter Technologies has higher earnings, but lower revenue than American Axle & Manufact..

Risk and Volatility

Puradyn Filter Technologies has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500. Comparatively, American Axle & Manufact. has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Summary

American Axle & Manufact. beats Puradyn Filter Technologies on 8 of the 11 factors compared between the two stocks.

About Puradyn Filter Technologies

Puradyn Filter Technologies, Inc. designs, manufactures, markets, and distributes bypass oil filtration systems for use with internal combustion engines and hydraulic equipment that use lubricating oil worldwide. The company offers its products under the Puradyn name. Its Puradyn system cleans oil by providing a loop circuit of oil filtration and treatment to continually remove solid, liquid, and gaseous contaminants from the oil through a filtration and absorption process. The company also manufactures disposable replacement filter elements for the Puradyn system. Its products are marketed to various industries that include hydraulic applications, and other users of engines or equipment that utilize up to 50 weight oil for lubrication. The company sells its products directly, as well as through manufacturer's representatives, distributors, or other agents to OEMs, other distributors, and national accounts. It serves oil and gas services, power generation, construction and forestry, commercial marine, mining, and transportation industries. The company was founded in 1987 and is based in Boynton Beach, Florida.

About American Axle & Manufact.

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting products in the United States, Mexico, South America, China, other Asian countries, Europe, and internationally. The company's Driveline segment offers axles, drive shafts, power transfer units, rear drive modules, transfer cases, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. Its Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears, transmission gears, and suspension components for original equipment manufacturers and automotive suppliers. The company's Powertrain segment offers transmission module and differential assemblies, transmission valve bodies, connecting rod forging and assemblies, torsional vibration dampers, and variable valve timing products for original equipment manufacturers and automotive suppliers. Its Casting segment provides thin wall castings and high strength ductile iron castings, as well as differential cases, steering knuckles, control arms, brackets, and turbo charger housings for the light vehicle, commercial, and industrial markets. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

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