Analyzing Federal Screw Works (OTCMKTS:FSCR) & Cooper-Standard (NYSE:CPS)

Federal Screw Works (OTCMKTS:FSCR) and Cooper-Standard (NYSE:CPS) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

Federal Screw Works has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Cooper-Standard has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Federal Screw Works and Cooper-Standard, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
Cooper-Standard	1	2	1	0	2.00

Cooper-Standard has a consensus price target of $49.33, suggesting a potential upside of 70.73%. Given Cooper-Standard’s stronger consensus rating and higher probable upside, analysts plainly believe Cooper-Standard is more favorable than Federal Screw Works.

Earnings & Valuation

This table compares Federal Screw Works and Cooper-Standard”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.11	$1.62 million	$0.71	10.56
Cooper-Standard	$2.74 billion	0.19	-$4.16 million	($2.18)	-13.25

Federal Screw Works has higher earnings, but lower revenue than Cooper-Standard. Cooper-Standard is trading at a lower price-to-earnings ratio than Federal Screw Works, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

69.1% of Cooper-Standard shares are owned by institutional investors. 46.2% of Federal Screw Works shares are owned by company insiders. Comparatively, 9.2% of Cooper-Standard shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Federal Screw Works and Cooper-Standard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	0.99%	N/A	N/A
Cooper-Standard	-1.41%	N/A	-2.15%

Summary

Cooper-Standard beats Federal Screw Works on 7 of the 12 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

About Cooper-Standard

Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., manufactures and sells sealing, fuel and brake delivery, and fluid transfer systems in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally. The company offers sealing systems, including dynamic seals, static seals, encapsulated glasses, textured surfaces with cloth appearance, obstacle detection sensor systems, FlushSeal systems, variable extrusions, specialty sealing products, stainless steel trims, and frameless systems. It also provides fuel and brake delivery systems comprising chassis and tank fuel lines and bundles, metallic brake lines and bundles, quick connects, low oligomer multi-layer convoluted tubes, brake jounce lines, direct injection and port fuel rails, MagAlloy break tube coating, and ArmorTube brake tube coating. In addition, the company offers fluid transfer systems, such as heater/coolant hoses, turbo charger hoses, charged air cooler ducts/assemblies, diesel particulate filter lines, secondary air hoses, degas tanks and deaerators, brake and clutch hoses, air intake and discharge systems, transmission oil cooling hoses, high temperature MLTs, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. Cooper-Standard Holdings Inc. was founded in 1960 and is headquartered in Northville, Michigan.