Head to Head Review: Aeva Technologies (NYSE:AEVA) & American Axle & Manufacturing (NYSE:AXL)

American Axle & Manufacturing (NYSE:AXLGet Rating) and Aeva Technologies (NYSE:AEVAGet Rating) 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 valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Valuation & Earnings

This table compares American Axle & Manufacturing and Aeva Technologies’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Axle & Manufacturing $5.16 billion 0.20 $5.90 million ($0.29) -31.52
Aeva Technologies $9.27 million 72.47 -$101.88 million ($0.54) -5.74

American Axle & Manufacturing has higher revenue and earnings than Aeva Technologies. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than Aeva Technologies, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
American Axle & Manufacturing -0.61% 14.39% 1.14%
Aeva Technologies -1,145.01% -23.42% -22.38%

Volatility & Risk

American Axle & Manufacturing has a beta of 2.21, indicating that its share price is 121% more volatile than the S&P 500. Comparatively, Aeva Technologies has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500.

Insider and Institutional Ownership

91.7% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 48.2% of Aeva Technologies shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent recommendations and price targets for American Axle & Manufacturing and Aeva Technologies, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle & Manufacturing 1 3 1 0 2.00
Aeva Technologies 0 1 4 0 2.80

American Axle & Manufacturing presently has a consensus price target of $8.20, indicating a potential downside of 10.28%. Aeva Technologies has a consensus price target of $9.00, indicating a potential upside of 190.32%. Given Aeva Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Aeva Technologies is more favorable than American Axle & Manufacturing.

Summary

American Axle & Manufacturing beats Aeva Technologies on 9 of the 13 factors compared between the two stocks.

American Axle & Manufacturing Company Profile (Get Rating)

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, and manufactures driveline and metal forming technologies that supports electric, hybrid, and internal combustion vehicles in the United States, Mexico, South America, China, other Asian countries, and Europe. It operates through Driveline and Metal Forming segments. The Driveline segment offers front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears and assemblies, and connecting rods and variable valve timing products for original equipment manufacturers and tier 1 automotive suppliers. American Axle & Manufacturing Holdings, Inc. has technology development agreement with Suzhou Inovance Automotive Ltd. and REE Automotive Ltd. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

Aeva Technologies Company Profile (Get Rating)

Aeva Technologies, Inc., through its frequency modulated continuous wave (FMCW) sensing technology, designs a 4D LiDAR-on-chip that enables the adoption of LiDAR across various applications. from automated driving to consumer electronics, consumer health, industrial automation, and security application. The company was founded in 2017 is based in Mountain View, California.

Want More Great Investing Ideas?

Receive News & Ratings for American Axle & Manufacturing Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for American Axle & Manufacturing and related companies with MarketBeat.com's FREE daily email newsletter.