Sifting through countless of stocks in the Automobile Components industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Lear Corporation or Garrett Motion Inc. because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Lear Corporation and Garrett Motion Inc. compare based on key financial metrics to determine which better meets your investment needs.

About Lear Corporation and Garrett Motion Inc.

Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company’s E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment’s products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity. It offers its products and services under the XEVO, GUILFORD, EAGLE OTTAWA, ConfigurE+, INTUTM, LEAR CONNEXUSTM, EXO, JOURNEYWARE, ProTec, SMART JUNCTION BOX, STRUCSURE, AVENTINO, and TeXstyle brands. Lear Corporation was founded in 1917 and is headquartered in Southfield, Michigan.

Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors in the United States, Europe, Asia, and internationally. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications. It also provides mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as compressing air for fuel cell compressors, and compressing refrigerant for electric cooling compressors. It offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is based in Rolle, Switzerland.

Latest Automobile Components and Lear Corporation, Garrett Motion Inc. Stock News

As of December 12, 2025, Lear Corporation had a $5.9 billion market capitalization, compared to the Automobile Components median of $2.7 million. Lear Corporation’s stock is up 20% in 2025, up 5.4% in the previous five trading days and up 10.74% in the past year.

Currently, Lear Corporation’s price-earnings ratio is 13.9. Lear Corporation’s trailing 12-month revenue is $23.0 billion with a 1.9% net profit margin. Year-over-year quarterly sales growth most recently was 1.7%. Analysts expect adjusted earnings to reach $12.123 per share for the current fiscal year. Lear Corporation currently has a 2.7% dividend yield.

As of December 12, 2025, Garrett Motion Inc. had a $3.3 billion market cap, putting it in the 63rd percentile of all stocks. Garrett Motion Inc.’s stock is up 88.8% in 2025, up 2.9% in the previous five trading days and up 86.54% in the past year.

Currently, Garrett Motion Inc.’s price-earnings ratio is 10.8. Garrett Motion Inc.’s trailing 12-month revenue is $3.5 billion with a 9.2% net profit margin. Year-over-year quarterly sales growth most recently was 9.2%. Analysts expect adjusted earnings to reach $1.571 per share for the current fiscal year. Garrett Motion Inc. currently has a 1.9% dividend yield.

How We Compare Lear Corporation and Garrett Motion Inc. Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Lear Corporation and Garrett Motion Inc.’s stock grades to see how they measure up against one another.

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Lear Corporation and Garrett Motion Inc. Stock Value Grades

Company	Ticker	Value
Lear Corporation	LEA	A
Garrett Motion Inc.	GTX	A

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection.

Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

AAII’s A+ Investor Value Grade derives from a stock’s value score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are a good value and so on.

Lear Corporation has a Value Score of 94, which is Deep Value. Garrett Motion Inc. has a Value Score of 95, which is Deep Value.

The Value Stock Winner: It’s a Tie!

Looking at the Value Grade breakdown above, both Lear Corporation and Garrett Motion Inc. have a Value Grade of A. For investors who focus solely on a company’s valuation, you will need to conduct further research into both of these companies’ other metrics to see if they could be good additions to your portfolio. It’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Lear Corporation and Garrett Motion Inc. Growth Grades

Company	Ticker	Growth
Lear Corporation	LEA	C
Garrett Motion Inc.	GTX	F

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Lear Corporation has a Growth Score of 60, which is Average. Garrett Motion Inc. has a Growth Score of 18, which is Very Weak.

The Growth Stock Winner: No Clear Winner

Neither Lear Corporation or Garrett Motion Inc. has a high enough Growth Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Lear Corporation or Garrett Motion Inc. is the better investment when it comes to sustainable growth.

Lear Corporation and Garrett Motion Inc.’s Estimate Revisions Grades

Company	Ticker	Earnings Estimate
Lear Corporation	LEA	D
Garrett Motion Inc.	GTX	B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Lear Corporation has a Earnings Estimate Score of 36, which is Negative. Garrett Motion Inc. has a Earnings Estimate Score of 65, which is Positive.

The Earnings Estimate Revisions Grade Winner: Garrett Motion Inc.

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, Garrett Motion Inc. has a better Earnings Estimate Revisions Grade than Lear Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, Garrett Motion Inc. could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Other Lear Corporation and Garrett Motion Inc. Grades

In addition to Growth, Estimate Revisions and Value, A+ Investor also provides grades for Momentum and Quality.

Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

AAII’s A+ Investor Quality Grade comes from the ranking of key metrics. Specifically, the quality grade is the percentile rank of the composite of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and F-Score.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Lear Corporation and Garrett Motion Inc. pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Lear Corporation or Garrett Motion Inc. Stock?

Overall, Lear Corporation stock has a Value Score of 94, Growth Score of 60 and Estimate Revisions Score of 36.

Garrett Motion Inc. stock has a Value Score of 95, Growth Score of 18 and Estimate Revisions Score of 65.

Comparing Lear Corporation and Garrett Motion Inc.’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.