Analyzing Stoneridge (SRI) & Sorl Auto Parts (SORL)
Stoneridge (NASDAQ: SORL) and Sorl Auto Parts (NASDAQ:SORL) are both small-cap computer and technology companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Risk & Volatility
Stoneridge has a beta of 1.02, indicating that its share price is 2% more volatile than the S&P 500. Comparatively, Sorl Auto Parts has a beta of 1.79, indicating that its share price is 79% more volatile than the S&P 500.
This is a summary of recent ratings and price targets for Stoneridge and Sorl Auto Parts, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sorl Auto Parts||0||0||1||0||3.00|
Stoneridge presently has a consensus target price of $36.25, suggesting a potential upside of 11.13%. Sorl Auto Parts has a consensus target price of $10.00, suggesting a potential upside of 100.80%. Given Sorl Auto Parts’ stronger consensus rating and higher possible upside, analysts clearly believe Sorl Auto Parts is more favorable than Stoneridge.
This table compares Stoneridge and Sorl Auto Parts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sorl Auto Parts||6.08%||12.95%||4.70%|
Insider and Institutional Ownership
91.4% of Stoneridge shares are held by institutional investors. Comparatively, 7.2% of Sorl Auto Parts shares are held by institutional investors. 4.4% of Stoneridge shares are held by company insiders. Comparatively, 58.9% of Sorl Auto Parts shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Stoneridge and Sorl Auto Parts’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stoneridge||$824.44 million||1.13||$45.17 million||$1.57||20.78|
|Sorl Auto Parts||$390.52 million||0.25||$24.32 million||$1.26||3.95|
Stoneridge has higher revenue and earnings than Sorl Auto Parts. Sorl Auto Parts is trading at a lower price-to-earnings ratio than Stoneridge, indicating that it is currently the more affordable of the two stocks.
Stoneridge beats Sorl Auto Parts on 10 of the 14 factors compared between the two stocks.
Stoneridge Company Profile
Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, motorcycle, off-highway, and agricultural vehicle markets. It operates through three segments: Control Devices, Electronics, and PST. The Control Devices segment provides sensors, switches, valves, and actuators that monitor, measure, or activate specific functions within a vehicle. The Electronics segment offers electronic instrument clusters, electronic control units, and driver information systems, as well as camera-based vision systems, monitors, and related products. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment's power distribution modules and systems regulate, coordinate, and direct the operation of the electrical system within a vehicle. The PST segment provides in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, infotainment systems, and vehicle monitoring and tracking devices. It offers its products and systems to various OEM and tier one customers, as well as aftermarket distributors and mass merchandisers for use in various vehicle platforms. Stoneridge, Inc. operates in North America, South America, Europe, and internationally. The company was founded in 1965 and is headquartered in Novi, Michigan.
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