American Axle & Manufact. (AXL) vs. Autoliv (ALV) Critical Survey

American Axle & Manufact. (NYSE:AXL) and Autoliv (NYSE:ALV) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Risk and Volatility

American Axle & Manufact. has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for American Axle & Manufact. and Autoliv, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle & Manufact. 2 2 5 0 2.33
Autoliv 3 13 9 0 2.24

American Axle & Manufact. presently has a consensus target price of $19.14, indicating a potential upside of 10.91%. Autoliv has a consensus target price of $122.63, indicating a potential upside of 49.66%. Given Autoliv’s higher possible upside, analysts clearly believe Autoliv is more favorable than American Axle & Manufact..

Earnings and Valuation

This table compares American Axle & Manufact. and Autoliv’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Axle & Manufact. $6.27 billion 0.31 $337.10 million $3.75 4.60
Autoliv $10.38 billion 0.69 $427.10 million $6.58 12.45

Autoliv has higher revenue and earnings than American Axle & Manufact.. American Axle & Manufact. is trading at a lower price-to-earnings ratio than Autoliv, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

98.3% of American Axle & Manufact. shares are held by institutional investors. Comparatively, 40.4% of Autoliv shares are held by institutional investors. 1.1% of American Axle & Manufact. shares are held by insiders. Comparatively, 0.3% of Autoliv shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
American Axle & Manufact. 6.00% 28.88% 5.77%
Autoliv 3.09% 17.38% 7.80%

Dividends

Autoliv pays an annual dividend of $2.48 per share and has a dividend yield of 3.0%. American Axle & Manufact. does not pay a dividend. Autoliv pays out 37.7% of its earnings in the form of a dividend. Autoliv has raised its dividend for 8 consecutive years.

Summary

Autoliv beats American Axle & Manufact. on 10 of the 17 factors compared between the two stocks.

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. The company's Driveline segment offers axles, driveshafts, 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 shafts, 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 produces 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. The company has operations in the United States, Canada, Mexico, South America, China, Europe, other Asian countries, and internationally. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies automotive safety systems to the automotive industry worldwide. The company operates through two segments, Passive Safety and Electronics. It offers modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, battery cable cutters, pedestrian protection systems, and child seats. The company also provides restraint control electronics and crash sensors for deployment of airbags and seatbelt pretensioners; active safety sensors and software for advanced driver assistance systems and autonomous driving solutions; and brake control systems. It primarily serves car manufacturers. The company was founded in 1953 and is headquartered in Stockholm, Sweden.

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