Stoneridge (NYSE:SRI – Get Free Report) and TDK (OTCMKTS:TTDKY – Get Free Report) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, earnings, valuation, analyst recommendations, institutional ownership and profitability.
Volatility & Risk
Stoneridge has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, TDK has a beta of 0.77, indicating that its stock price is 23% less volatile than the S&P 500.
Institutional & Insider Ownership
98.1% of Stoneridge shares are held by institutional investors. 2.9% of Stoneridge shares are held by insiders. Comparatively, 0.0% of TDK shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stoneridge | 1 | 0 | 1 | 0 | 2.00 |
| TDK | 0 | 0 | 0 | 0 | 0.00 |
Stoneridge presently has a consensus price target of $16.00, suggesting a potential upside of 159.32%. Given Stoneridge’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stoneridge is more favorable than TDK.
Profitability
This table compares Stoneridge and TDK’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stoneridge | -3.66% | -8.78% | -3.48% |
| TDK | 7.55% | 9.32% | 4.65% |
Valuation and Earnings
This table compares Stoneridge and TDK”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stoneridge | $908.29 million | 0.19 | -$16.52 million | ($1.16) | -5.32 |
| TDK | $14.48 billion | 1.71 | $1.10 billion | $0.61 | 20.84 |
TDK has higher revenue and earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than TDK, indicating that it is currently the more affordable of the two stocks.
Summary
TDK beats Stoneridge on 8 of the 14 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 TDK
TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.
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