Analyzing Holley (NYSE:HLLY) and Aisin Seiki (OTCMKTS:ASEKY)
by Sarita Garza · The Markets DailyAisin Seiki (OTCMKTS:ASEKY – Get Free Report) and Holley (NYSE:HLLY – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Aisin Seiki has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Holley has a beta of 1.39, meaning that its share price is 39% more volatile than the S&P 500.
Insider & Institutional Ownership
39.7% of Holley shares are owned by institutional investors. 4.9% of Holley shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and price targets for Aisin Seiki and Holley, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aisin Seiki | 1 | 0 | 0 | 1 | 2.50 |
| Holley | 1 | 2 | 3 | 1 | 2.57 |
Holley has a consensus target price of $4.90, suggesting a potential upside of 108.96%. Given Holley’s stronger consensus rating and higher possible upside, analysts plainly believe Holley is more favorable than Aisin Seiki.
Profitability
This table compares Aisin Seiki and Holley’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aisin Seiki | 3.14% | 6.73% | 3.68% |
| Holley | 1.68% | 8.41% | 3.23% |
Valuation and Earnings
This table compares Aisin Seiki and Holley”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aisin Seiki | $34.00 billion | 0.30 | $1.13 billion | $1.45 | 9.57 |
| Holley | $613.51 million | 0.46 | $19.17 million | $0.08 | 29.31 |
Aisin Seiki has higher revenue and earnings than Holley. Aisin Seiki is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.
Summary
Holley beats Aisin Seiki on 9 of the 14 factors compared between the two stocks.
About Aisin Seiki
Aisin Corporation manufactures and sells automotive parts, and energy and lifestyle related products. It provides powertrain products comprising 1 motor hybrid transmission and eaxle products; chassis and vehicle safety systems, such as automated parking systems and electronically controlled brake systems; power sliding door systems and sunroof products; connected and sharing solutions; and repair and maintenance products. The company also offers energy solutions comprising ENE·FARM, a system that generates electricity by extracting hydrogen from gas; gas heat pump air conditioners; warm water shower toilet seats; and peltier modules that are thermoelectric conversion devices, which function as heat pumps by sending direct current. In addition, it provides ILY-Ai, a multifunctional personal shopping mobility product for various user needs; fiber laser; and audio equipment. Aisin Corporation was founded in 1943 and is headquartered in Kariya, Japan.
About Holley
Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.