nVent Electric (NYSE:NVT – Get Free Report) and Stoneridge (NYSE:SRI – Get Free Report) are both computer and technology companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.
Institutional & Insider Ownership
90.1% of nVent Electric shares are held by institutional investors. Comparatively, 98.1% of Stoneridge shares are held by institutional investors. 2.5% of nVent Electric shares are held by company insiders. Comparatively, 2.9% of Stoneridge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for nVent Electric and Stoneridge, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| nVent Electric | 0 | 2 | 10 | 0 | 2.83 |
| Stoneridge | 1 | 0 | 1 | 0 | 2.00 |
Earnings and Valuation
This table compares nVent Electric and Stoneridge”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| nVent Electric | $3.89 billion | 4.40 | $710.20 million | $4.30 | 24.66 |
| Stoneridge | $908.29 million | 0.23 | -$16.52 million | ($1.16) | -6.47 |
nVent Electric has higher revenue and earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than nVent Electric, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
nVent Electric has a beta of 1.31, suggesting that its stock price is 31% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500.
Profitability
This table compares nVent Electric and Stoneridge’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| nVent Electric | 18.25% | 15.18% | 8.12% |
| Stoneridge | -3.66% | -8.78% | -3.48% |
Summary
nVent Electric beats Stoneridge on 10 of the 14 factors compared between the two stocks.
About nVent Electric
nVent Electric plc, together with its subsidiaries, designs, manufactures, markets, installs, and services electrical connection and protection solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and internationally. The company operates through three segments: Enclosures, Electrical & Fastening Solutions, and Thermal Management. The Enclosures segment provides solutions to protect electronics and data in mission critical applications, including data solutions. This segment also offers digital and automation solutions, system integrations, and global services. The Electrical & Fastening Solutions segment provides solutions that connect and protect power and data infrastructure. This segment also offers power connections, fastening solutions, cable management solutions, grounding and bonding systems, and tools and test instruments. The Thermal Management segment offers heat management solutions that protect people and assets. This segment includes heat tracing for freeze protection and process temperature maintenance and control; pipe freeze protection, surface deicing, hot water temperature maintenance, floor heating, fire-rated wiring, and leak detection; and heat trace systems, connected controls, remote monitoring, and annual service programs. The company markets its products through electrical distributors, contractors, and original equipment manufacturers under the CADDY, ERICO, GARDNER BENDER, HOFFMAN, ILSCO, RAYCHEM, SCHROFF, and TRACER brand names. Its products are used for various applications, such as industrial, commercial and residential, infrastructure, and energy. nVent Electric plc was founded in 1903 and is based in London, the United Kingdom.
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.
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