Romeo Power (NYSE:RMO) and Gentex (NASDAQ:GNTX) Financial Analysis

Romeo Power (NYSE:RMOGet Rating) and Gentex (NASDAQ:GNTXGet Rating) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Romeo Power and Gentex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Romeo Power 0 2 0 0 2.00
Gentex 1 0 5 0 2.67

Romeo Power presently has a consensus target price of $5.67, suggesting a potential upside of 492.81%. Gentex has a consensus target price of $32.81, suggesting a potential upside of 10.48%. Given Romeo Power’s higher possible upside, equities research analysts clearly believe Romeo Power is more favorable than Gentex.

Earnings and Valuation

This table compares Romeo Power and Gentex’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Romeo Power $16.80 million 7.65 $10.03 million ($1.23) -0.78
Gentex $1.73 billion 4.02 $360.80 million $1.40 21.21

Gentex has higher revenue and earnings than Romeo Power. Romeo Power is trading at a lower price-to-earnings ratio than Gentex, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Romeo Power and Gentex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Romeo Power -604.73% -45.51% -39.66%
Gentex 19.52% 17.46% 15.59%

Risk and Volatility

Romeo Power has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Gentex has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Institutional and Insider Ownership

49.6% of Romeo Power shares are held by institutional investors. Comparatively, 86.2% of Gentex shares are held by institutional investors. 18.6% of Romeo Power shares are held by insiders. Comparatively, 0.2% of Gentex shares are held by 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.

Summary

Gentex beats Romeo Power on 10 of the 14 factors compared between the two stocks.

About Romeo Power (Get Rating)

Romeo Power, Inc., an energy storage technology company, designs and manufactures lithium-ion battery modules and packs for vehicle electrification in North America. The company designs and manufactures battery modules, battery packs, and battery management system technologies; and provides non-recurring engineering services, such as design, prototype, and testing services. It serves commercial electric vehicle manufacturers, electric powertrain converters, electric watercraft manufacturers, fleet operators, and automobile, and recreational vehicle manufacturers. The company was founded in 2014 and is headquartered in Vernon, California.

About Gentex (Get Rating)

Gentex Corporation designs, develops, manufactures, markets, and supplies digital vision, connected car, dimmable glass, and fire protection products in the United States, Germany, Japan, Mexico, and internationally. It operates through Automotive Products and Other segments. The company offers automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, automotive suppliers, and various aftermarket and accessory customers. It also provides variable dimmable windows to aircraft manufacturers and airline operators. In addition, the company offers photoelectric smoke detectors and alarms, electrochemical carbon monoxide alarms and detectors, audible and visual signaling alarms, and bells and speakers used in fire detection systems in office buildings, hotels, and other commercial and residential buildings, as well as researches and develops nanofiber chemical sensing products. The company sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. Gentex Corporation was incorporated in 1974 and is headquartered in Zeeland, Michigan.

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