Garrett Motion Inc. (GTX) vs Lear Corporation (LEA)

Garrett Motion Inc. and Lear Corporation are both Auto Parts companies. Lear Corporation is the larger, with a market value of $5.5B against $3.6B — 1.5× the size. Garrett Motion Inc. trades at the lower P/E: 9.8× against 10.0×. Garrett Motion Inc. grew revenue faster over the last twelve months: 6.93% against 3.52%. Garrett Motion Inc. has the higher net margin (9.97% vs 2.46%) and the higher return on invested capital (64.4% vs 7.85%). Both pay a dividend; Lear Corporation yields more (2.70% vs 1.64%). Across the 22 metrics below, Garrett Motion Inc. leads on 12 and Lear Corporation on 10.

Valuation

Metric GTX LEA Auto Parts median
P/E 9.78 9.97 14.81
P/S 0.95 0.24 0.55
P/B n/m 1.09 1.16
Price to free cash flow 9.13 8.03 10.18
EV/EBITDA 7.21 4.82 7.39
EV/Sales 1.26 0.31 0.67
Earnings yield 10.23% 10.03% 3.46%
Free cash flow yield 10.96% 12.46% 2.74%

Profitability

Metric GTX LEA Auto Parts median
Gross margin 21.13% 6.91% 22.13%
Operating margin 14.57% 3.68% 3.50%
Net margin 9.97% 2.46% 1.89%
Free cash flow margin 10.44% 2.95% 1.43%
Return on equity (52.69%) 11.26% 0.96%
Return on assets 15.18% 3.84% 1.20%
Return on invested capital 64.37% 7.85% 4.41%

Growth

Metric GTX LEA Auto Parts median
Revenue growth (TTM) 6.93% 3.52% 4.32%
EPS growth (last fiscal year) 20.63% (9.14%) 5.72%
Revenue growth, 5-year CAGR 3.39% 6.41% 7.66%
Net income growth, 5-year CAGR 31.12% 22.48% 0.00%

Health

Metric GTX LEA Auto Parts median
Debt to equity (2.21) 0.53 0.43
Current ratio 1.04 1.18 1.73
Net debt to EBITDA 2.11 1.16 1.26

Dividend

Metric GTX LEA Auto Parts median
Dividend yield 1.64% 2.70% 1.97%
Payout ratio 0.16 0.27 0.27

Size

Metric GTX LEA Auto Parts median
Market cap 3.57b 5.50b 1.03b

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