Head to Head Comparison: Stoneridge (NYSE:SRI) vs. Surge Component (OTCMKTS:SPRS)

Stoneridge (NYSE:SRI) and Surge Component (OTCMKTS:SPRS) are both small-cap computer and technology companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, dividends and profitability.

Analyst Ratings

This is a summary of recent recommendations for Stoneridge and Surge Component, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoneridge	2	1	0	0	1.33
Surge Component	0	0	0	0	0.00

Stoneridge currently has a consensus price target of $16.00, indicating a potential upside of 109.12%. Given Stoneridge’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stoneridge is more favorable than Surge Component.

Volatility & Risk

Stoneridge has a beta of 1.85, suggesting that its stock price is 85% more volatile than the S&P 500. Comparatively, Surge Component has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500.

Profitability

This table compares Stoneridge and Surge Component’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%
Surge Component	2.80%	4.98%	3.87%

Insider and Institutional Ownership

98.1% of Stoneridge shares are held by institutional investors. 11.0% of Stoneridge shares are held by insiders. Comparatively, 56.0% of Surge Component shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Stoneridge and Surge Component”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoneridge	$861.26 million	0.25	-$102.83 million	($4.41)	-1.73
Surge Component	$36.32 million	0.56	$1.14 million	$0.18	19.39

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

Summary

Surge Component beats Stoneridge on 8 of the 13 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 Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.