Analyzing Strattec Security (STRT) and Motorcar Parts of America (MPAA)
Strattec Security (NASDAQ:STRT) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Institutional and Insider Ownership
78.9% of Strattec Security shares are owned by institutional investors. 7.1% of Strattec Security shares are owned by company insiders. Comparatively, 4.7% of Motorcar Parts of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
This table compares Strattec Security 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||0.20%||10.81%||5.66%|
Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. Motorcar Parts of America does not pay a dividend.
This is a summary of recent ratings and recommmendations for Strattec Security and Motorcar Parts of America, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||2||2||0||2.50|
Motorcar Parts of America has a consensus target price of $30.67, suggesting a potential upside of 60.56%. Given Motorcar Parts of America’s higher probable upside, analysts clearly believe Motorcar Parts of America is more favorable than Strattec Security.
Risk & Volatility
Strattec Security has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
Earnings & Valuation
This table compares Strattec Security and Motorcar Parts of America’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Strattec Security||$439.20 million||0.27||$12.28 million||N/A||N/A|
|Motorcar Parts of America||$428.07 million||0.84||$16.31 million||$1.70||11.24|
Motorcar Parts of America has lower revenue, but higher earnings than Strattec Security.
Motorcar Parts of America beats Strattec Security on 9 of the 13 factors compared between the two stocks.
About Strattec Security
Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products under the VAST brand primarily in the United States. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles, and related products. It also provides 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 Canada, Mexico, Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.
About Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy duty trucks, and industrial and agricultural application parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; brake master cylinders; and other products, such as turbochargers, brake power boosters, and diagnostic equipment. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was founded in 1968 and is headquartered in Torrance, California.
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