Johnson Controls, Inc. (JCI), Harman International Industries Inc./DE/ (HAR): Profiting From a New American Dream

Delphi Automotive PLC (NYSE:DLPH)’s key business is electrical for autos, which includes designing vehicle electrical architecture. This accounts for just over 40% of sales. Meanwhile, Delphi’s other segments includes powertrain systems (30%), electronics safety (17%), and thermal systems (10%). Its largest customers include General Motors (18% of revenue), Volkswagen AG (ADR) (OTCMKTS:VLKAY) (11%), Daimler (7%), and Ford (6%), where the majority of revenue (40% for 2012) comes from Europe, the Middle East and Africa.

However, all three should perform well, assuming the auto industry continues its robust growth. All three stocks have relatively low PEG ratios, with Johnson Controls, Inc. (NYSE:JCI) at 1.2, Harman International Industries Inc./DE/ (NYSE:HAR) 1, and Delphi Automotive PLC (NYSE:DLPH) at 0.8. If I had to choose one auto-parts company, it would have to be Delphi. Not only does it have the lowest P/E and lowest PEG, but it also has an impressively diverse-product portfolio and exposure to Europe, which should be one of the great growth stories going forward given pent-up demand.