Critical Comparison: Fox Factory (NASDAQ:FOXF) vs. Aptiv (NYSE:APTV)

Aptiv (NYSE:APTV) and Fox Factory (NASDAQ:FOXF) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for Aptiv and Fox Factory, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aptiv	2	3	19	0	2.71
Fox Factory	2	2	1	1	2.17

Aptiv presently has a consensus price target of $76.50, indicating a potential upside of 68.08%. Fox Factory has a consensus price target of $21.00, indicating a potential upside of 4.08%. Given Aptiv’s stronger consensus rating and higher possible upside, analysts plainly believe Aptiv is more favorable than Fox Factory.

Volatility and Risk

Aptiv has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500.

Profitability

This table compares Aptiv and Fox Factory’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aptiv	1.17%	17.10%	7.03%
Fox Factory	-20.39%	5.57%	2.37%

Earnings & Valuation

This table compares Aptiv and Fox Factory”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aptiv	$20.52 billion	0.46	$165.00 million	$1.06	42.94
Fox Factory	$1.46 billion	0.58	-$544.58 million	($7.14)	-2.83

Aptiv has higher revenue and earnings than Fox Factory. Fox Factory is trading at a lower price-to-earnings ratio than Aptiv, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

94.2% of Aptiv shares are held by institutional investors. 0.1% of Aptiv shares are held by insiders. Comparatively, 0.9% of Fox Factory shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Aptiv beats Fox Factory on 12 of the 15 factors compared between the two stocks.

About Aptiv

Aptiv PLC engages in design, manufacture, and sale of vehicle components in North America, Europe, Middle East, Africa, the Asia Pacific, South America, and internationally. The company provides electrical, electronic, and safety technology solutions to the automotive and commercial vehicle markets. It operates through two segments, 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 products, electrical centers, and hybrid high voltage and safety distribution systems. Its Advanced Safety and User Experience segment provides critical technologies and services for vehicle safety, security, comfort, and convenience, such as sensing and perception systems, electronic control units, multi-domain controllers, vehicle connectivity systems, application software, autonomous driving technologies, and end-to-end DevOps tools. The company was formerly known as Delphi Automotive PLC and changed its name to Aptiv PLC in December 2017. Aptiv PLC was incorporated in 2011 and is based in Dublin, Ireland.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets performance-defining products and system worldwide. The company offers powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks; lift kits and components with shock products and aftermarket accessory packages for trucks; and mid-end and high-end front fork and rear suspension products. It also provides suspension tuning services, as well as wheels, off-road tires and accessories. In addition, the company offers mountain and gravel bike wheels, and other performance cycling components, including cranks, chainrings, pedals, bars, stems, and seat posts, as well as baseball and softball products comprising metal bats, wood bats, apparel and accessories, batting gloves, fielding gloves, and bags and protective equipment under the Marucci brand. The company serves aftermarket applications products under the BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, SCA, and Custom Wheel House brands; and mountain bikes, e-bikes, and gravel bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is based in Duluth, Georgia.