Stoneridge (NYSE:SRI – Get Free Report) and Video Display (OTCMKTS:VIDE – Get Free Report) are both small-cap computer and technology companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.
Institutional & Insider Ownership
98.1% of Stoneridge shares are held by institutional investors. 2.9% of Stoneridge shares are held by insiders. Comparatively, 48.8% of Video Display shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Stoneridge and Video Display”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stoneridge | $877.92 million | 0.21 | -$16.52 million | ($1.08) | -6.15 |
| Video Display | $8.30 million | 0.00 | -$130,000.00 | ($0.13) | 0.00 |
Video Display has lower revenue, but higher earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than Video Display, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and target prices for Stoneridge and Video Display, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stoneridge | 1 | 0 | 1 | 0 | 2.00 |
| Video Display | 0 | 0 | 0 | 0 | 0.00 |
Stoneridge currently has a consensus price target of $16.00, indicating a potential upside of 140.78%. Given Stoneridge’s stronger consensus rating and higher possible upside, equities analysts clearly believe Stoneridge is more favorable than Video Display.
Volatility and Risk
Stoneridge has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Video Display has a beta of 0.57, suggesting that its share price is 43% less volatile than the S&P 500.
Profitability
This table compares Stoneridge and Video Display’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stoneridge | -3.39% | -9.24% | -3.69% |
| Video Display | N/A | N/A | N/A |
About Stoneridge
Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company operates through three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers actuators, sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units. 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 also offers electronic control units that regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories, including parking sensors and rearview cameras; in-vehicle audio and infotainment devices; and driver information systems and telematics solutions. The company provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.
About Video Display
Video Display Corporation, together with its subsidiaries, designs, engineers, manufactures, markets, distributes, and installs display products and systems for government, military, aerospace, medical, and commercial organizations worldwide. The company operates in four divisions: Simulation and Training Products; Cyber Secure Products; Data Display CRTs; and Other Computer Products. It offers dome and multi-faceted aircraft simulator display systems, video walls for broadcast and control centers, rugged video walls for combat information centers, rugged flat panel displays and computers, projector and monitor upgrades, and projection screens. The company also provides cyber security products, such as TEMPEST technology products and custom engineering solutions; and various contract services, including the design and testing solutions for defense and niche commercial uses. In addition, it manufactures and distributes cathode ray tubes (CRTs) for use in data display screens, such as computer terminal monitors, medical monitoring equipment, and various other data display applications, as well as in television sets; and distributes CRTs and other electronic tubes purchased from original equipment manufacturers, as well as offers cyber-secure keyboards. The company was founded in 1975 and is headquartered in Cocoa, Florida.
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