Cepton (NASDAQ:CPTN – Get Free Report) and Gentex (NASDAQ:GNTX – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, dividends, valuation, earnings, analyst recommendations and profitability.
Risk & Volatility
Cepton has a beta of 0.05, suggesting that its stock price is 95% less volatile than the S&P 500. Comparatively, Gentex has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cepton and Gentex’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cepton | $13.06 million | 3.28 | -$48.55 million | ($2.56) | -1.05 |
| Gentex | $2.30 billion | 3.39 | $428.40 million | $1.89 | 17.84 |
Insider and Institutional Ownership
68.2% of Cepton shares are owned by institutional investors. Comparatively, 86.8% of Gentex shares are owned by institutional investors. 36.1% of Cepton shares are owned by company insiders. Comparatively, 0.4% of Gentex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent recommendations for Cepton and Gentex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cepton | 0 | 2 | 0 | 0 | 2.00 |
| Gentex | 0 | 3 | 3 | 0 | 2.50 |
Gentex has a consensus target price of $37.83, suggesting a potential upside of 12.23%. Given Gentex’s stronger consensus rating and higher probable upside, analysts clearly believe Gentex is more favorable than Cepton.
Profitability
This table compares Cepton and Gentex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cepton | -300.64% | N/A | -47.27% |
| Gentex | 18.77% | 19.19% | 16.93% |
Summary
Gentex beats Cepton on 13 of the 14 factors compared between the two stocks.
About Cepton
Cepton, Inc. provides lidar-based solutions for automotive, smart cities, smart spaces, and smart industrial applications in the United States, Japan, China, and internationally. The company offers autograde lidar sensors, including Cepton Ultra, a slimmest lidar with MagnoSteer technology and proprietary ASIC chipset, enabling a combination of 300-meter range at 10% reflectivity and 0.05° resolution; Vista-X, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications; and Nova, an extremely-small form factor lidar solution with a range of up to 30m for near-range applications in ADAS L2+/L3, AV L4/L5, and suitable for smart infrastructure applications. It also provides industrial grade lidar sensors, such as Vista-P, a compact lidar solution with a range of up to 200m for long-range applications in ADAS L2+/L3, AV L4/L5, and smart infrastructure applications; and Sora-P, an ultra-high scan rate, compact, and quasi line-scanning lidar solution that delivers high-fidelity profiling of objects moving at high speeds for free flow tolling and other industrial applications. The company was founded in 2016 and is headquartered in San Jose, California.
About Gentex
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, Republic of Korea, 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. It 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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