Contrasting ADOMANI (OTCMKTS:ADOM) & American Axle & Manufacturing (NYSE:DCH)

American Axle & Manufacturing (NYSE:DCH) and ADOMANI (OTCMKTS:ADOM) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Volatility and Risk

American Axle & Manufacturing has a beta of 1.6, indicating that its share price is 60% more volatile than the S&P 500. Comparatively, ADOMANI has a beta of 3.82, indicating that its share price is 282% more volatile than the S&P 500.

Earnings & Valuation

This table compares American Axle & Manufacturing and ADOMANI”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
American Axle & Manufacturing	$5.84 billion	0.14	-$19.70 million	($0.18)	-39.06
ADOMANI	$620,000.00	0.00	-$4.39 million	N/A	N/A

ADOMANI has lower revenue, but higher earnings than American Axle & Manufacturing.

Analyst Recommendations

This is a summary of current ratings and recommmendations for American Axle & Manufacturing and ADOMANI, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
American Axle & Manufacturing	1	1	3	0	2.40
ADOMANI	0	0	0	0	0.00

American Axle & Manufacturing currently has a consensus target price of $12.45, suggesting a potential upside of 77.10%. Given American Axle & Manufacturing’s stronger consensus rating and higher possible upside, equities analysts clearly believe American Axle & Manufacturing is more favorable than ADOMANI.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
American Axle & Manufacturing	-0.34%	10.00%	1.17%
ADOMANI	-344.40%	-12.40%	-12.02%

Institutional and Insider Ownership

91.4% of American Axle & Manufacturing shares are held by institutional investors. Comparatively, 2.1% of ADOMANI shares are held by institutional investors. 3.7% of American Axle & Manufacturing shares are held by company insiders. Comparatively, 30.1% of ADOMANI shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

American Axle & Manufacturing beats ADOMANI on 8 of the 11 factors compared between the two stocks.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc. is a leading supplier of driveline and drivetrain systems, modules and components for the light vehicle market world wide. It manufactures Driveline and Metal Forming technologies to support electric, hybrid and internal combustion vehicles. It’s the primary supplier of driveline components to its major customers include General Motors, Stellantis and Ford. It also sells various products to Ford & Stellantis from Metal Forming segment. It has the 2 operating segments. Driveline segment comprises front & rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric & hybrid driveline products and systems for light trucks, SUVs, crossover vehicles, passenger cars and commercial vehicles. Metal Forming segment comprises axle & transmission shafts, ring and pinion gears, differential gears & assemblies, connecting rods and variable valve timing products for OEM and Tier 1 automotive suppliers.

About ADOMANI

Envirotech Vehicles, Inc. engages in the design, manufacture, and installation of zero-emission electric drivetrain systems for fleet vehicles. Its products and services include zero-emission vehicles and chassis; e-trikes; and Neighborhood Electric Vehicles that are enclosed vehicles with seatbelts, climate control, and fold-down rear seats. The company was founded by Edward Riggs Monfort on August 12, 2012 and is headquartered in Corona, CA.