PHINIA (NYSE:PHIN – Get Free Report) and Gentherm (NASDAQ:THRM – Get Free Report) are both auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.
Profitability
This table compares PHINIA and Gentherm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PHINIA | 3.06% | 7.52% | 3.56% |
| Gentherm | 3.23% | 13.56% | 7.17% |
Institutional and Insider Ownership
90.9% of PHINIA shares are owned by institutional investors. Comparatively, 97.1% of Gentherm shares are owned by institutional investors. 1.5% of PHINIA shares are owned by company insiders. Comparatively, 1.9% of Gentherm shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PHINIA | 0 | 0 | 2 | 0 | 3.00 |
| Gentherm | 1 | 2 | 1 | 0 | 2.00 |
PHINIA presently has a consensus price target of $43.00, suggesting a potential downside of 2.12%. Gentherm has a consensus price target of $65.75, suggesting a potential upside of 36.98%. Given Gentherm’s higher possible upside, analysts clearly believe Gentherm is more favorable than PHINIA.
Earnings and Valuation
This table compares PHINIA and Gentherm’s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PHINIA | $3.50 billion | 0.57 | $102.00 million | N/A | N/A |
| Gentherm | $1.47 billion | 1.03 | $40.34 million | $1.46 | 32.88 |
PHINIA has higher revenue and earnings than Gentherm.
Summary
Gentherm beats PHINIA on 7 of the 11 factors compared between the two stocks.
About PHINIA
PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.
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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