Analyzing Aeva Technologies (NYSE:AEVA) & Garrett Motion (NYSE:GTX)

Aeva Technologies (NYSE:AEVA) and Garrett Motion (NYSE:GTX) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares Aeva Technologies and Garrett Motion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aeva Technologies	-2,018.56%	-78.71%	-66.33%
Garrett Motion	8.12%	-38.75%	12.39%

Volatility & Risk

Aeva Technologies has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, Garrett Motion has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Insider & Institutional Ownership

62.9% of Aeva Technologies shares are held by institutional investors. Comparatively, 86.3% of Garrett Motion shares are held by institutional investors. 29.1% of Aeva Technologies shares are held by company insiders. Comparatively, 0.6% of Garrett Motion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Aeva Technologies and Garrett Motion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aeva Technologies	$9.07 million	43.82	-$149.33 million	($2.86)	-2.54
Garrett Motion	$3.48 billion	0.48	$261.00 million	$1.27	6.37

Garrett Motion has higher revenue and earnings than Aeva Technologies. Aeva Technologies is trading at a lower price-to-earnings ratio than Garrett Motion, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings for Aeva Technologies and Garrett Motion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aeva Technologies	0	2	4	0	2.67
Garrett Motion	0	0	1	0	3.00

Aeva Technologies currently has a consensus price target of $6.54, suggesting a potential downside of 9.86%. Garrett Motion has a consensus price target of $12.00, suggesting a potential upside of 48.33%. Given Garrett Motion’s stronger consensus rating and higher probable upside, analysts plainly believe Garrett Motion is more favorable than Aeva Technologies.

Summary

Garrett Motion beats Aeva Technologies on 10 of the 14 factors compared between the two stocks.

About Aeva Technologies

Aeva Technologies, Inc. engages in the design, development, manufacture, and sale of LiDAR sensing systems, and related perception and autonomy-enabling software solutions in North America, Europe, the Middle East, Africa, and Asia. The company develops its products using frequency modulated continuous wave (FMCW) sensing technology. It offers Aeries II, a 4D LiDAR solution that consist of 4D LiDAR sensing system with embedded software for automotive grade production across passenger car, trucking, and mobility applications; and Atlas, a FMCW 4D LiDAR with simultaneous velocity and range detection for the automotive market. The company's products are also used in industrial automation, consumer device, and security market applications. Aeva Technologies, Inc. was founded in 2017 and is headquartered in Mountain View, California.

About Garrett Motion

Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications. In addition, it provides mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as compressing air for fuel cell compressors, and compressing refrigerant for electric cooling compressors. The company offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is based in Rolle, Switzerland.