Analyzing American Axle (AXL) & Its Competitors

American Axle (NYSE: AXL) is one of 45 publicly-traded companies in the “Motor vehicle parts & accessories” industry, but how does it contrast to its competitors? We will compare American Axle to similar companies based on the strength of its valuation, institutional ownership, dividends, analyst recommendations, risk, profitability and earnings.

Risk & Volatility

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American Axle has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, American Axle’s competitors have a beta of 1.36, suggesting that their average stock price is 36% more volatile than the S&P 500.

Profitability

This table compares American Axle and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Axle 4.92% 28.46% 5.30%
American Axle Competitors 2.04% 19.96% 5.71%

Analyst Recommendations

This is a summary of current ratings and price targets for American Axle and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle 2 2 8 0 2.50
American Axle Competitors 264 1290 1863 83 2.50

American Axle presently has a consensus price target of $19.88, suggesting a potential upside of 32.50%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 11.99%. Given American Axle’s higher possible upside, research analysts clearly believe American Axle is more favorable than its competitors.

Insider & Institutional Ownership

75.6% of shares of all “Motor vehicle parts & accessories” companies are owned by institutional investors. 1.1% of American Axle shares are owned by insiders. Comparatively, 12.1% of shares of all “Motor vehicle parts & accessories” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares American Axle and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
American Axle $6.27 billion $337.10 million 4.00
American Axle Competitors $7.96 billion $495.49 million 12.80

American Axle’s competitors have higher revenue and earnings than American Axle. American Axle is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

American Axle competitors beat American Axle on 8 of the 13 factors compared.

American Axle Company Profile

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.

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