Head to Head Review: Stoneridge (SRI) and Metaldyne Performance Group (MPG)
Stoneridge (NYSE: SRI) and Metaldyne Performance Group (NYSE:MPG) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, valuation, dividends and profitability.
Valuation and Earnings
This table compares Stoneridge and Metaldyne Performance Group’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Stoneridge||$695.98 million||0.97||$77.46 million||$2.62||9.12|
|Metaldyne Performance Group||N/A||N/A||N/A||$1.39||15.76|
Stoneridge has higher revenue and earnings than Metaldyne Performance Group. Stoneridge is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.
Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Stoneridge does not pay a dividend. Metaldyne Performance Group pays out 26.6% of its earnings in the form of a dividend.
Institutional and Insider Ownership
87.0% of Stoneridge shares are held by institutional investors. Comparatively, 18.6% of Metaldyne Performance Group shares are held by institutional investors. 5.3% of Stoneridge shares are held by insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a summary of current ratings for Stoneridge and Metaldyne Performance Group, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Metaldyne Performance Group||0||1||0||0||2.00|
Stoneridge currently has a consensus price target of $22.00, indicating a potential downside of 7.95%. Metaldyne Performance Group has a consensus price target of $21.00, indicating a potential downside of 4.11%. Given Metaldyne Performance Group’s higher probable upside, analysts clearly believe Metaldyne Performance Group is more favorable than Stoneridge.
This table compares Stoneridge and Metaldyne Performance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Metaldyne Performance Group||2.60%||9.80%||2.11%|
Stoneridge beats Metaldyne Performance Group on 8 of the 11 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.
Metaldyne Performance Group Company Profile
Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.
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