Critical Comparison: Stoneridge (SRI) and Motorcar Parts of America (MPAA)
Stoneridge (NYSE: SRI) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap auto, truck & motorcycle parts – nec companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.
Institutional & Insider Ownership
86.2% of Stoneridge shares are held by institutional investors. 5.3% of Stoneridge shares are held by insiders. Comparatively, 4.4% of Motorcar Parts of America shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Stoneridge and Motorcar Parts of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||8.03%||15.15%||8.68%|
Risk & Volatility
Stoneridge has a beta of 1.47, suggesting that its share price is 47% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Stoneridge and Motorcar Parts of America, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
Stoneridge presently has a consensus price target of $22.00, indicating a potential upside of 1.71%. Motorcar Parts of America has a consensus price target of $36.67, indicating a potential upside of 44.98%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, analysts clearly believe Motorcar Parts of America is more favorable than Stoneridge.
Valuation & Earnings
This table compares Stoneridge and Motorcar Parts of America’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Stoneridge||$695.98 million||0.88||$77.46 million||$2.62||8.26|
|Motorcar Parts of America||$421.25 million||1.14||$37.57 million||$1.79||14.13|
Stoneridge has higher revenue and earnings than Motorcar Parts of America. Stoneridge is trading at a lower price-to-earnings ratio than Motorcar Parts of America, indicating that it is currently the more affordable of the two stocks.
Stoneridge beats Motorcar Parts of America on 9 of the 14 factors compared between the two stocks.
Stoneridge Company Profile
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.
Motorcar Parts of America Company Profile
Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.
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