Automobile manufacturers have been performing well as of late, largely due to increasing sales pushed by a recovering U.S. economy and growing emerging markets. Auto parts suppliers, such as TRW Automotive Holdings Corp (TRW) and Johnson Controls Inc. (JCI), are bound to benefit largely from rising sales, and thus present themselves as interesting investment opportunities. However, due to their focus on different industry segments, and their current stock valuation, investing in only one of these companies makes sense.
With over 180 facilities in 26 countries, TRW Automotive caters active and passive safety systems to every major automaker in the world. The company is well diversified, producing braking, steering, and electronic components, modules, and systems. Although the firm had an outstanding amount of debt just some years ago, it has been recovering spectacularly, reducing debt levels by half since 2007. John Hussman of Hussman Economtrics Advisors is a TRW Automotive bull, with a 500,000 share stake in the firm.
— Guru Focus