Financial Analysis: Autoliv (NYSE:ALV) and PHINIA (NYSE:PHIN)

Autoliv (NYSE:ALV) and PHINIA (NYSE:PHIN) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Profitability

This table compares Autoliv and PHINIA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Autoliv	5.91%	30.05%	9.03%
PHINIA	2.48%	8.04%	3.69%

Insider & Institutional Ownership

69.6% of Autoliv shares are owned by institutional investors. Comparatively, 90.9% of PHINIA shares are owned by institutional investors. 0.2% of Autoliv 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, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for Autoliv and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Autoliv	0	7	8	1	2.63
PHINIA	0	0	2	0	3.00

Autoliv currently has a consensus target price of $126.46, suggesting a potential upside of 25.59%. PHINIA has a consensus target price of $43.00, suggesting a potential downside of 6.40%. Given Autoliv’s higher possible upside, equities analysts plainly believe Autoliv is more favorable than PHINIA.

Dividends

Autoliv pays an annual dividend of $2.72 per share and has a dividend yield of 2.7%. PHINIA pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Autoliv pays out 42.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares Autoliv 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
Autoliv	$10.57 billion	0.78	$488.00 million	$6.41	15.71
PHINIA	$3.50 billion	0.57	$102.00 million	N/A	N/A

Autoliv has higher revenue and earnings than PHINIA.

Summary

Autoliv beats PHINIA on 11 of the 15 factors compared between the two stocks.

About Autoliv

Autoliv, Inc., through its subsidiaries, develops, manufactures, and supplies passive safety systems to the automotive industry in Europe, the Americas, China, Japan, and rest of Asia. It offers passive safety systems, including modules and components for frontal-impact airbag protection systems, side-impact airbag protection systems, seatbelts, steering wheels, and inflator technologies. The company also provides mobility safety solutions, such as pedestrian protection, battery cut-off switches, connected safety services, and safety solutions for riders of powered two wheelers. It primarily serves car manufacturers. Autoliv, Inc. was founded in 1953 and is headquartered in Stockholm, Sweden.

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.