Financial Contrast: Lear (NYSE:LEA) & Mingteng International (NASDAQ:MTEN)

Mingteng International (NASDAQ:MTEN) and Lear (NYSE:LEA) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, earnings, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Risk & Volatility

Mingteng International has a beta of -1.11, indicating that its share price is 211% less volatile than the S&P 500. Comparatively, Lear has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Earnings and Valuation

This table compares Mingteng International and Lear”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mingteng International	$10.12 million	0.16	-$5.68 million	N/A	N/A
Lear	$23.26 billion	0.27	$436.80 million	$8.15	14.96

Lear has higher revenue and earnings than Mingteng International.

Profitability

This table compares Mingteng International and Lear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mingteng International	N/A	N/A	N/A
Lear	1.88%	13.40%	4.58%

Analyst Recommendations

This is a summary of recent ratings and target prices for Mingteng International and Lear, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mingteng International	1	0	0	0	1.00
Lear	0	10	3	1	2.36

Lear has a consensus target price of $138.00, suggesting a potential upside of 13.19%. Given Lear’s stronger consensus rating and higher possible upside, analysts clearly believe Lear is more favorable than Mingteng International.

Institutional and Insider Ownership

97.0% of Lear shares are held by institutional investors. 0.9% of Lear shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Lear beats Mingteng International on 13 of the 13 factors compared between the two stocks.

About Mingteng International

Mingteng International Corporation Inc. engages in the design, development, production, assembly, testing, repair, and after-sale service of molds in the People's Republic of China. It offers casting molds for turbocharger systems, braking systems, steering and differential systems, and other automotive system parts. The company also produces molds for new energy electric vehicle motor drive systems, battery pack systems, and engineering hydraulic components. It serves automobile, construction machinery, and other manufacturing industries. The company was founded in 2015 and is based in Wuxi, China.

About Lear

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.