Critical Survey: American Axle & Manufacturing (NYSE:AXL) versus PHINIA (NYSE:PHIN)

PHINIA (NYSE:PHIN) and American Axle & Manufacturing (NYSE:AXL) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Risk & Volatility

PHINIA has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.

Insider & Institutional Ownership

90.9% of PHINIA shares are held by institutional investors. Comparatively, 91.4% of American Axle & Manufacturing shares are held by institutional investors. 1.5% of PHINIA shares are held by company insiders. Comparatively, 2.1% of American Axle & Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares PHINIA and American Axle & Manufacturing”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PHINIA	$3.50 billion	0.57	$102.00 million	N/A	N/A
American Axle & Manufacturing	$6.25 billion	0.12	-$33.60 million	($0.07)	-88.29

PHINIA has higher earnings, but lower revenue than American Axle & Manufacturing.

Profitability

This table compares PHINIA and American Axle & Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PHINIA	2.48%	8.04%	3.69%
American Axle & Manufacturing	0.04%	3.47%	0.39%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for PHINIA and American Axle & Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHINIA	0	1	1	0	2.50
American Axle & Manufacturing	1	5	0	0	1.83

PHINIA presently has a consensus target price of $52.50, indicating a potential upside of 14.06%. American Axle & Manufacturing has a consensus target price of $7.10, indicating a potential upside of 14.89%. Given American Axle & Manufacturing’s higher probable upside, analysts plainly believe American Axle & Manufacturing is more favorable than PHINIA.

Summary

PHINIA beats American Axle & Manufacturing on 8 of the 13 factors compared between the two stocks.

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.

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.