APTV vs LEA

For growth investors, Aptiv PLC (APTV) is the stronger pick with 3.

5% revenue growth year-over-year, versus -0. 2% for Lear Corporation (LEA). Lear Corporation (LEA) offers the better valuation at 16. 2x trailing P/E (9. 1x forward), making it the more compelling value choice. Analysts rate Aptiv PLC (APTV) a "Buy" — based on 33 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Lear Corporation (LEA) is the cheapest at 16.

2x versus Aptiv PLC at 73. 1x. On forward P/E, Aptiv PLC is actually cheaper at 8. 4x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lear Corporation wins at 0. 36x versus Aptiv PLC's 0. 67x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Lear Corporation (LEA) delivered a total return of -22.

2%, compared to -61. 6% for Aptiv PLC (APTV). Over 10 years, the gap is even starker: LEA returned +36. 6% versus APTV's +6. 9%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Lear Corporation (LEA) is the lower-risk stock at 1.

14β versus Aptiv PLC's 1. 44β — meaning APTV is approximately 27% more volatile than LEA relative to the S&P 500. On balance sheet safety, Lear Corporation (LEA) carries a lower debt/equity ratio of 79% versus 85% for Aptiv PLC — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Aptiv PLC (APTV) is pulling ahead at 3.

5% versus -0. 2% for Lear Corporation (LEA). On earnings-per-share growth, the picture is similar: Lear Corporation grew EPS -9. 1% year-over-year, compared to -89. 2% for Aptiv PLC. Over a 3-year CAGR, APTV leads at 5. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Lear Corporation (LEA) is the more profitable company, earning 1.

9% net margin versus 0. 8% for Aptiv PLC — meaning it keeps 1. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: APTV leads at 5. 8% versus 4. 4% for LEA. At the gross margin level — before operating expenses — APTV leads at 19. 1%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Lear Corporation (LEA) is the more undervalued stock at a PEG of 0. 36x versus Aptiv PLC's 0. 67x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Aptiv PLC (APTV) trades at 8. 4x forward P/E versus 9. 1x for Lear Corporation — 0. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for APTV: 72. 8% to $94. 75.

In this comparison, LEA (2.

3% yield) pays a dividend. APTV does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Lear Corporation (LEA) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

14), 2. 3% yield). Both have compounded well over 10 years (LEA: +36. 6%, APTV: +6. 9%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: APTV is a mid-cap quality compounder stock; LEA is a small-cap deep-value stock. LEA pays a dividend while APTV does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.