Continental Aktiengesellschaft (OTCMKTS:CTTAF) versus American Axle & Manufacturing (NYSE:AXL) Head-To-Head Survey

Continental Aktiengesellschaft (OTCMKTS:CTTAF) and American Axle & Manufacturing (NYSE:AXL) are both consumer cyclical companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and price targets for Continental Aktiengesellschaft and American Axle & Manufacturing, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental Aktiengesellschaft	0	0	0	0	N/A
American Axle & Manufacturing	1	3	1	0	2.00

American Axle & Manufacturing has a consensus price target of $7.70, indicating a potential upside of 8.91%. Given American Axle & Manufacturing’s higher possible upside, analysts plainly believe American Axle & Manufacturing is more favorable than Continental Aktiengesellschaft.

Institutional & Insider Ownership

25.6% of Continental Aktiengesellschaft shares are owned by institutional investors. Comparatively, 91.4% of American Axle & Manufacturing shares are owned by institutional investors. 2.1% of American Axle & Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Continental Aktiengesellschaft and American Axle & Manufacturing’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Continental Aktiengesellschaft	N/A	N/A	N/A	$10.73	6.47
American Axle & Manufacturing	$6.08 billion	0.14	-$33.60 million	($0.28)	-25.25

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Continental Aktiengesellschaft	N/A	N/A	N/A
American Axle & Manufacturing	-0.55%	-1.78%	-0.20%

About Continental Aktiengesellschaft

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

About American Axle & Manufacturing

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. It operates through two segments, 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 range of products, such as engine, transmission, driveline, and safety-critical components for traditional internal combustion engine and electric vehicle architectures, including light vehicles, commercial vehicles, and off-highway vehicles, as well as products for industrial markets. It operates in North America, Asia, Europe, and South America. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.