Adient vs Lear

Adient and Lear are two major players in the automotive industry, specializing in the manufacturing of automotive seating and electrical distribution systems, respectively. Both companies have shown strong financial performance in recent years, with Adient experiencing growth in its seating business and Lear expanding its presence in the market for electrical systems. Investors are closely watching these two stocks, as they offer opportunities for potential growth and profitability in the ever-evolving automotive sector.

Adient or Lear?

When comparing Adient and Lear, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Adient and Lear.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Adient has a dividend yield of -%, while Lear has a dividend yield of 3.68%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Adient reports a 5-year dividend growth of 0.00% year and a payout ratio of 170.27%. On the other hand, Lear reports a 5-year dividend growth of 1.92% year and a payout ratio of 32.95%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Adient P/E ratio at 25.56 and Lear's P/E ratio at 10.97. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Adient P/B ratio is 0.98 while Lear's P/B ratio is 1.24.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Adient has seen a 5-year revenue growth of -0.13%, while Lear's is 0.19%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Adient's ROE at 3.48% and Lear's ROE at 11.15%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.33 for Adient and $104.53 for Lear. Over the past year, Adient's prices ranged from $19.40 to $37.19, with a yearly change of 91.70%. Lear's prices fluctuated between $101.67 and $147.11, with a yearly change of 44.69%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.