Head-To-Head Review: Garrett Motion (NYSE:GTX) and Aeva Technologies (NYSE:AEVA)

Garrett Motion (NYSE:GTX) and Aeva Technologies (NYSE:AEVA) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Garrett Motion and Aeva Technologies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garrett Motion	0	0	1	0	3.00
Aeva Technologies	0	2	4	0	2.67

Garrett Motion presently has a consensus price target of $12.00, indicating a potential upside of 48.33%. Aeva Technologies has a consensus price target of $6.54, indicating a potential downside of 9.86%. Given Garrett Motion’s stronger consensus rating and higher possible upside, research analysts plainly believe Garrett Motion is more favorable than Aeva Technologies.

Earnings and Valuation

This table compares Garrett Motion and Aeva Technologies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garrett Motion	$3.48 billion	0.48	$261.00 million	$1.27	6.37
Aeva Technologies	$9.07 million	43.82	-$149.33 million	($2.86)	-2.54

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

Profitability

This table compares Garrett Motion and Aeva Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garrett Motion	8.12%	-38.75%	12.39%
Aeva Technologies	-2,018.56%	-78.71%	-66.33%

Institutional & Insider Ownership

86.3% of Garrett Motion shares are owned by institutional investors. Comparatively, 62.9% of Aeva Technologies shares are owned by institutional investors. 0.6% of Garrett Motion shares are owned by insiders. Comparatively, 29.1% of Aeva Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Garrett Motion has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Aeva Technologies has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Summary

Garrett Motion beats Aeva Technologies on 10 of the 14 factors compared between the two stocks.

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 Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.