Analyzing Strattec Security (STRT) and Its Competitors

Strattec Security (NASDAQ:STRT) is one of 148 public companies in the “Automobile Components” industry, but how does it weigh in compared to its peers? We will compare Strattec Security to similar companies based on the strength of its dividends, valuation, earnings, risk, institutional ownership, analyst recommendations and profitability.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Strattec Security and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strattec Security	0	1	2	1	3.00
Strattec Security Competitors	1087	4496	6133	202	2.46

Strattec Security currently has a consensus price target of $79.00, suggesting a potential upside of 27.50%. As a group, “Automobile Components” companies have a potential upside of 74.14%. Given Strattec Security’s peers higher possible upside, analysts plainly believe Strattec Security has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Strattec Security and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Strattec Security	$574.19 million	$20.60 million	15.04
Strattec Security Competitors	$7.67 billion	$70.54 million	4.02

Strattec Security’s peers have higher revenue and earnings than Strattec Security. Strattec Security is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Strattec Security has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, Strattec Security’s peers have a beta of 3.88, suggesting that their average stock price is 288% more volatile than the S&P 500.

Insider and Institutional Ownership

68.9% of Strattec Security shares are held by institutional investors. Comparatively, 48.4% of shares of all “Automobile Components” companies are held by institutional investors. 3.1% of Strattec Security shares are held by insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Strattec Security and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strattec Security	2.94%	10.06%	6.84%
Strattec Security Competitors	-40.86%	0.03%	-1.92%

Dividends

Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 0.9%. Strattec Security pays out 13.6% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.6% and pay out 24.3% of their earnings in the form of a dividend.

Summary

Strattec Security beats its peers on 8 of the 15 factors compared.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.