Head-To-Head Comparison: Garrett Motion (NYSE:GTX) versus PHINIA (NYSE:PHIN)

Garrett Motion (NYSE:GTX) and PHINIA (NYSE:PHIN) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, dividends, institutional ownership, profitability, valuation, analyst recommendations and risk.

Profitability

This table compares Garrett Motion and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garrett Motion	6.42%	-35.33%	9.46%
PHINIA	3.06%	7.52%	3.56%

Earnings & Valuation

This table compares Garrett Motion and PHINIA’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garrett Motion	$3.89 billion	0.49	$261.00 million	($1.15)	-7.26
PHINIA	$3.50 billion	0.52	$102.00 million	N/A	N/A

Garrett Motion has higher revenue and earnings than PHINIA.

Analyst Recommendations

This is a summary of recent ratings and target prices for Garrett Motion and PHINIA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garrett Motion	0	0	1	0	3.00
PHINIA	0	0	2	0	3.00

Garrett Motion presently has a consensus price target of $15.00, indicating a potential upside of 79.64%. PHINIA has a consensus price target of $43.00, indicating a potential upside of 8.04%. Given Garrett Motion’s higher probable upside, research analysts plainly believe Garrett Motion is more favorable than PHINIA.

Insider and Institutional Ownership

86.3% of Garrett Motion shares are owned by institutional investors. Comparatively, 90.9% of PHINIA shares are owned by institutional investors. 0.6% of Garrett Motion shares are owned by insiders. Comparatively, 1.5% of PHINIA shares are owned by 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.

About Garrett Motion

Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications. In addition, it provides mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as compressing air for fuel cell compressors, and compressing refrigerant for electric cooling compressors. The company offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is based in Rolle, Switzerland.

About PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.