Financial Survey: Stoneridge (NYSE:SRI) and Nokian Renkaat Oyj (OTCMKTS:NKRKF)

Stoneridge (NYSE:SRI) and Nokian Renkaat Oyj (OTCMKTS:NKRKF) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.

Profitability

This table compares Stoneridge and Nokian Renkaat Oyj’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stoneridge	-15.24%	-22.50%	-8.17%
Nokian Renkaat Oyj	N/A	N/A	N/A

Insider and Institutional Ownership

98.1% of Stoneridge shares are held by institutional investors. Comparatively, 34.8% of Nokian Renkaat Oyj shares are held by institutional investors. 11.0% of Stoneridge shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Stoneridge and Nokian Renkaat Oyj”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoneridge	$861.26 million	0.24	-$102.83 million	($4.41)	-1.69
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.89	19.35

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Stoneridge and Nokian Renkaat Oyj, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoneridge	1	2	0	0	1.67
Nokian Renkaat Oyj	0	0	1	0	3.00

Stoneridge currently has a consensus target price of $16.00, suggesting a potential upside of 114.25%. Given Stoneridge’s higher probable upside, analysts plainly believe Stoneridge is more favorable than Nokian Renkaat Oyj.

Summary

Nokian Renkaat Oyj beats Stoneridge on 7 of the 11 factors compared between the two stocks.

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 Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.