Horizon Global (HZN) & Stoneridge (SRI) Critical Analysis
Horizon Global (NYSE: HZN) and Stoneridge (NYSE:SRI) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Volatility and Risk
Horizon Global has a beta of 1.63, indicating that its stock price is 63% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Horizon Global and Stoneridge, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Horizon Global presently has a consensus price target of $20.20, indicating a potential upside of 42.35%. Stoneridge has a consensus price target of $22.00, indicating a potential downside of 9.91%. Given Horizon Global’s stronger consensus rating and higher probable upside, equities analysts plainly believe Horizon Global is more favorable than Stoneridge.
This table compares Horizon Global and Stoneridge’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
90.8% of Horizon Global shares are held by institutional investors. Comparatively, 87.0% of Stoneridge shares are held by institutional investors. 1.3% of Horizon Global shares are held by company insiders. Comparatively, 5.3% of Stoneridge shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Horizon Global and Stoneridge’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Horizon Global||$649.20 million||0.55||-$12.36 million||($0.42)||-33.79|
|Stoneridge||$695.98 million||0.99||$77.46 million||$2.62||9.32|
Stoneridge has higher revenue and earnings than Horizon Global. Horizon Global 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 Horizon Global on 8 of the 14 factors compared between the two stocks.
About Horizon Global
Horizon Global Corporation is a designer, manufacturer and distributor of a range of custom-engineered towing, trailering, cargo management and other products serving the automotive aftermarket, retail and original equipment (OE) channels. The Company operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. Its towing product category includes devices and accessories installed on a tow-vehicle for the purpose of attaching a trailer and camper, among others, such as hitches and other towing accessories. Its trailering product category includes control devices and components of the trailer itself, such as brake controls and brake replacement parts. Its cargo management product category includes a range of products used to facilitate the transportation of various forms of cargo, to secure that cargo or to organize items. Its other product category includes a range of items, such as tubular push bars, side steps, and commercial brooms and brushes.
Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.
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