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

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

Insider and Institutional Ownership

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ADOMANI	$620,000.00	0.00	-$4.39 million	N/A	N/A
American Axle & Manufacturing	$5.84 billion	0.23	-$19.70 million	($0.18)	-30.94

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ADOMANI	0	0	0	0	0.00
American Axle & Manufacturing	2	3	6	0	2.36

American Axle & Manufacturing has a consensus price target of $10.12, indicating a potential upside of 81.71%. Given American Axle & Manufacturing’s stronger consensus rating and higher possible upside, analysts clearly believe American Axle & Manufacturing is more favorable than ADOMANI.

Profitability

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

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

Risk and Volatility

ADOMANI has a beta of 3.82, meaning that its stock price is 282% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.61, meaning that its stock price is 61% more volatile than the S&P 500.

Summary

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

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.

About American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994, and is headquartered in Detroit, MI.