Standard Motor Products (NYSE:SMP) and Stoneridge (NYSE:SRI) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, profitability and earnings.

Valuation and Earnings

This table compares Standard Motor Products and Stoneridge’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Standard Motor Products $1.12 billion 1.01 $37.97 million $2.83 17.70
Stoneridge $824.44 million 1.02 $45.17 million $1.57 18.84

Stoneridge has lower revenue, but higher earnings than Standard Motor Products. Standard Motor Products is trading at a lower price-to-earnings ratio than Stoneridge, indicating that it is currently the more affordable of the two stocks.

Dividends

Standard Motor Products pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. Stoneridge does not pay a dividend. Standard Motor Products pays out 29.7% of its earnings in the form of a dividend. Standard Motor Products has raised its dividend for 7 consecutive years.

Institutional & Insider Ownership

83.3% of Standard Motor Products shares are owned by institutional investors. Comparatively, 89.0% of Stoneridge shares are owned by institutional investors. 6.4% of Standard Motor Products shares are owned by company insiders. Comparatively, 4.4% of Stoneridge shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Standard Motor Products and Stoneridge’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Standard Motor Products 2.66% 12.38% 6.89%
Stoneridge 6.52% 21.43% 9.43%

Analyst Ratings

This is a breakdown of current ratings and price targets for Standard Motor Products and Stoneridge, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standard Motor Products 0 3 0 0 2.00
Stoneridge 0 2 3 0 2.60

Standard Motor Products currently has a consensus target price of $48.00, indicating a potential downside of 4.17%. Stoneridge has a consensus target price of $36.25, indicating a potential upside of 22.55%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts plainly believe Stoneridge is more favorable than Standard Motor Products.

Volatility & Risk

Standard Motor Products has a beta of 1.66, suggesting that its share price is 66% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Summary

Stoneridge beats Standard Motor Products on 11 of the 17 factors compared between the two stocks.

Standard Motor Products Company Profile

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. Its Engine Management segment manufactures and distributes engine management replacement parts, including electronic ignition control modules, fuel injectors, remanufactured diesel injectors and pumps, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, various sensors primarily measuring temperature, vehicle systems, electronic throttle bodies, and other engine management components primarily under the Standard, Blue Streak, BWD, Select, Intermotor, OEM, LockSmart, TechSmart, Tech Expert, and GP Sorensen brands. The company's Temperature Control segment manufacture, remanufacture, and distribute replacement parts for automotive temperature control systems, engine cooling systems, power window accessories, and windshield washer systems, primarily under the Four Seasons, EVERCO, ACi, and Hayden brands. This segment provides new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, AC service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to large retail chains, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Latin America, and Europe. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.

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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