American Axle & Manufacturing (NYSE:AXL – Get Free Report) and PHINIA (NYSE:PHIN – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, dividends, risk and institutional ownership.
Valuation & Earnings
This table compares American Axle & Manufacturing and PHINIA”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Axle & Manufacturing | $6.25 billion | 0.12 | -$33.60 million | ($0.07) | -89.57 |
| PHINIA | $3.50 billion | 0.58 | $102.00 million | $4.86 | 9.61 |
PHINIA has lower revenue, but higher earnings than American Axle & Manufacturing. American Axle & Manufacturing is trading at a lower price-to-earnings ratio than PHINIA, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Axle & Manufacturing | 1 | 5 | 1 | 0 | 2.00 |
| PHINIA | 0 | 1 | 1 | 0 | 2.50 |
American Axle & Manufacturing presently has a consensus target price of $7.58, indicating a potential upside of 20.95%. PHINIA has a consensus target price of $52.50, indicating a potential upside of 11.96%. Given American Axle & Manufacturing’s higher possible upside, equities analysts clearly believe American Axle & Manufacturing is more favorable than PHINIA.
Volatility & Risk
American Axle & Manufacturing has a beta of 1.95, meaning that its share price is 95% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Institutional and Insider Ownership
91.4% of American Axle & Manufacturing shares are owned by institutional investors. Comparatively, 90.9% of PHINIA shares are owned by institutional investors. 2.1% of American Axle & Manufacturing 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.
Profitability
This table compares American Axle & Manufacturing and PHINIA’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Axle & Manufacturing | 0.04% | 3.47% | 0.39% |
| PHINIA | 2.48% | 8.04% | 3.69% |
Summary
PHINIA beats American Axle & Manufacturing on 8 of the 13 factors compared between the two stocks.
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.
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.
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