LCI Industries (NYSE:LCII) & AB Dynamics (OTCMKTS:ABDDF) Critical Analysis

LCI Industries (NYSE:LCII) and AB Dynamics (OTCMKTS:ABDDF) are both consumer discretionary companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Valuation and Earnings

This table compares LCI Industries and AB Dynamics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LCI Industries	$4.12 billion	0.63	$188.25 million	$8.14	13.17
AB Dynamics	N/A	N/A	N/A	N/A	N/A

LCI Industries has higher revenue and earnings than AB Dynamics.

Analyst Ratings

This is a summary of recent ratings for LCI Industries and AB Dynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LCI Industries	0	6	3	0	2.33
AB Dynamics	0	0	0	0	0.00

LCI Industries currently has a consensus target price of $140.57, suggesting a potential upside of 31.16%. Given LCI Industries’ stronger consensus rating and higher possible upside, equities research analysts clearly believe LCI Industries is more favorable than AB Dynamics.

Profitability

This table compares LCI Industries and AB Dynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LCI Industries	4.84%	14.03%	6.05%
AB Dynamics	N/A	N/A	N/A

Institutional and Insider Ownership

99.7% of LCI Industries shares are held by institutional investors. 3.3% of LCI Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

LCI Industries beats AB Dynamics on 9 of the 9 factors compared between the two stocks.

About LCI Industries

LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates through two segments: Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles, ABS, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct to retail customers through the Internet. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1956 and is based in Elkhart, Indiana.

About AB Dynamics

AB Dynamics plc designs, develops, manufactures, and supplies vehicle test and development systems, and verification products and services for driver assistance systems, autonomous system, and vehicle dynamics. The company offers advanced vehicle testing solutions from physical proving ground automation to large scale virtual testing in simulation; rFpro, a simulation environment for the automotive and motorsport industries; and full-scale track testing services, including ADAS and vehicle dynamics tests, along with applied research, human factors, and simulation. It also provides automotive testing services comprising evaluations of ADAS systems, infotainment, connectivity, electric vehicle performance and charging, and other associated functions; and retrofit solutions that enable the automation of conventional vehicle fleets rapidly and cost-effectively. In addition, the company creates and deploys a range of Driver-in-the-Loop (DIL) simulators for all types of vehicles, driving scenarios, experiments, and product development aims. Its products are used to evaluate the performance of vehicle active safety systems, autonomous technologies, electric vehicles, vehicle's durability, and dynamics. The company operates in the United Kingdom, Germany, the United States, China, Japan, Singapore, and internationally. The company was founded in 1982 and is headquartered in Bradford on Avon, the United Kingdom.