Financial Analysis: Stoneridge (SRI) and Its Competitors

Stoneridge (NYSE: SRI) is one of 32 public companies in the “Auto, Truck & Motorcycle Parts” industry, but how does it contrast to its competitors? We will compare Stoneridge to similar companies based on the strength of its earnings, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.

Volatility and Risk

Stoneridge has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500. Comparatively, Stoneridge’s competitors have a beta of 1.40, indicating that their average share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Stoneridge and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 2 1 0 2.33
Stoneridge Competitors 145 895 1428 37 2.54

Stoneridge presently has a consensus target price of $19.50, suggesting a potential downside of 11.76%. As a group, “Auto, Truck & Motorcycle Parts” companies have a potential upside of 3.89%. Given Stoneridge’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Stoneridge has less favorable growth aspects than its competitors.

Profitability

This table compares Stoneridge and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stoneridge 10.12% 22.52% 9.17%
Stoneridge Competitors -95.27% 3.29% -1.03%

Insider and Institutional Ownership

87.8% of Stoneridge shares are held by institutional investors. Comparatively, 71.1% of shares of all “Auto, Truck & Motorcycle Parts” companies are held by institutional investors. 5.3% of Stoneridge shares are held by insiders. Comparatively, 12.3% of shares of all “Auto, Truck & Motorcycle Parts” companies 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.

Valuation and Earnings

This table compares Stoneridge and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Stoneridge $759.88 million $85.94 million 8.19
Stoneridge Competitors $5.85 billion $698.05 million 15.47

Stoneridge’s competitors have higher revenue and earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Stoneridge competitors beat Stoneridge on 8 of the 13 factors compared.

About Stoneridge

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.

Receive News & Ratings for Stoneridge Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Stoneridge Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply