Adient (NYSE:ADNT – Get Free Report) and Cepton (NASDAQ:CPTN – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.
Valuation and Earnings
This table compares Adient and Cepton’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Adient | $14.12 billion | 0.29 | -$120.00 million | $0.12 | 354.67 |
| Cepton | $7.43 million | 15.24 | $9.38 million | ($0.29) | -2.49 |
Cepton has lower revenue, but higher earnings than Adient. Cepton is trading at a lower price-to-earnings ratio than Adient, indicating that it is currently the more affordable of the two stocks.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Adient | 0.08% | 4.99% | 1.32% |
| Cepton | -627.17% | -783.92% | -101.39% |
Institutional and Insider Ownership
96.4% of Adient shares are owned by institutional investors. Comparatively, 3.8% of Cepton shares are owned by institutional investors. 1.1% of Adient shares are owned by company insiders. Comparatively, 45.0% of Cepton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Adient and Cepton, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Adient | 2 | 4 | 4 | 0 | 2.20 |
| Cepton | 1 | 1 | 0 | 0 | 1.50 |
Adient presently has a consensus price target of $45.38, indicating a potential upside of 6.61%. Cepton has a consensus price target of $2.88, indicating a potential upside of 298.20%. Given Cepton’s higher possible upside, analysts plainly believe Cepton is more favorable than Adient.
Risk and Volatility
Adient has a beta of 2.76, suggesting that its share price is 176% more volatile than the S&P 500. Comparatively, Cepton has a beta of -0.27, suggesting that its share price is 127% less volatile than the S&P 500.
Summary
Adient beats Cepton on 10 of the 14 factors compared between the two stocks.
About Adient
Adient plc, an investment holding company, engages in the design, development, manufacture, and market of seating systems and components for passenger cars, commercial vehicles, and light trucks. The company's automotive seating solutions include complete seating systems, frames, mechanisms, foams, head restraints, armrests, and trim covers. It serves automotive original equipment manufacturers in the Americas, including North America and South America; Europe, Middle East, and Africa; and Asia Pacific. Adient plc was incorporated in 2016 and is based in Dublin, Ireland.
About Cepton
Cepton, Inc. provides lidar-based solutions for automotive, smart cities, smart spaces, and smart industrial applications in the United States, Japan, China, and internationally. The company offers autograde lidar sensors, including Vista-X, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications; and Nova, an ultra-small form factor lidar solution with a range of up to 30m for near-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications. It also provides industrial grade lidar sensors, such as Vista-P, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and smart infrastructure applications; and Sora-P, an ultra-high scan rate, compact, and quasi line-scanning lidar solution that delivers high-fidelity profiling of objects moving at high speeds for free flow tolling and other industrial applications. The company was founded in 2016 and is headquartered in San Jose, California.
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