Contrasting PHINIA (NYSE:PHIN) & Garrett Motion (NYSE:GTX)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PHINIA	3.06%	7.52%	3.56%
Garrett Motion	6.42%	-35.33%	9.46%

Institutional and Insider Ownership

90.9% of PHINIA shares are owned by institutional investors. Comparatively, 86.3% of Garrett Motion shares are owned by institutional investors. 1.5% of PHINIA shares are owned by company insiders. Comparatively, 0.6% of Garrett Motion shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for PHINIA and Garrett Motion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PHINIA	0	0	2	0	3.00
Garrett Motion	0	0	1	0	3.00

PHINIA presently has a consensus price target of $43.00, indicating a potential upside of 6.70%. Garrett Motion has a consensus price target of $15.00, indicating a potential upside of 78.15%. Given Garrett Motion’s higher possible upside, analysts clearly believe Garrett Motion is more favorable than PHINIA.

Earnings and Valuation

This table compares PHINIA and Garrett Motion’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PHINIA	$3.50 billion	0.53	$102.00 million	N/A	N/A
Garrett Motion	$3.89 billion	0.49	$261.00 million	($1.15)	-7.32

Garrett Motion has higher revenue and earnings than PHINIA.

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.

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.