Analyzing Gentex (GNTX) and Its Competitors

Gentex (NASDAQ: GNTX) is one of 45 public companies in the “Motor vehicle parts & accessories” industry, but how does it weigh in compared to its peers? We will compare Gentex to similar businesses based on the strength of its dividends, institutional ownership, risk, profitability, valuation, earnings and analyst recommendations.

Earnings & Valuation

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This table compares Gentex and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Gentex $1.79 billion $406.79 million 19.02
Gentex Competitors $7.89 billion $494.31 million 13.54

Gentex’s peers have higher revenue and earnings than Gentex. Gentex is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Gentex has a beta of 1.26, meaning that its share price is 26% more volatile than the S&P 500. Comparatively, Gentex’s peers have a beta of 1.35, meaning that their average share price is 35% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Gentex and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gentex 0 4 5 0 2.56
Gentex Competitors 253 1256 1828 81 2.51

Gentex currently has a consensus target price of $25.25, indicating a potential upside of 3.70%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 7.84%. Given Gentex’s peers higher probable upside, analysts clearly believe Gentex has less favorable growth aspects than its peers.

Profitability

This table compares Gentex and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gentex 22.66% 18.35% 15.64%
Gentex Competitors 2.20% 22.50% 5.66%

Dividends

Gentex pays an annual dividend of $0.44 per share and has a dividend yield of 1.8%. Gentex pays out 34.4% of its earnings in the form of a dividend. As a group, “Motor vehicle parts & accessories” companies pay a dividend yield of 1.7% and pay out 21.3% of their earnings in the form of a dividend.

Insider & Institutional Ownership

84.4% of Gentex shares are held by institutional investors. Comparatively, 75.7% of shares of all “Motor vehicle parts & accessories” companies are held by institutional investors. 0.6% of Gentex shares are held by company insiders. Comparatively, 11.9% of shares of all “Motor vehicle parts & accessories” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Gentex peers beat Gentex on 8 of the 15 factors compared.

About Gentex

Gentex Corporation provides automatic-dimming and non-dimming rearview mirrors, and electronics for the automotive industry; dimmable aircraft windows for the aviation industry; and commercial smoke alarms and signaling devices for the fire protection industry worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and interior and exterior non-automatic-dimming rearview mirrors with electronic features for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also provides photoelectric smoke detectors and alarms, audible and visual signaling alarms, electrochemical carbon monoxide detectors and alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, Michigan.

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