Contrasting Strattec Security (STRT) & Its Competitors

Strattec Security (NASDAQ:STRT) is one of 148 publicly-traded companies in the “Automobile Components” industry, but how does it compare to its peers? We will compare Strattec Security to related businesses based on the strength of its earnings, risk, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Volatility and Risk

Strattec Security has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500. Comparatively, Strattec Security’s peers have a beta of 3.70, suggesting that their average stock price is 270% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Strattec Security and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Strattec Security	1	1	1	1	2.50
Strattec Security Competitors	1083	4478	6116	202	2.46

Strattec Security currently has a consensus target price of $83.00, indicating a potential upside of 32.31%. As a group, “Automobile Components” companies have a potential upside of 74.17%. Given Strattec Security’s peers higher probable upside, analysts clearly believe Strattec Security has less favorable growth aspects than its peers.

Insider & Institutional Ownership

68.9% of Strattec Security shares are held by institutional investors. Comparatively, 48.3% of shares of all “Automobile Components” companies are held by institutional investors. 3.1% of Strattec Security shares are held by insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies 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.

Valuation & Earnings

This table compares Strattec Security and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Strattec Security	$579.39 million	$20.60 million	12.55
Strattec Security Competitors	$6.50 billion	$70.54 million	5.57

Strattec Security’s peers have higher revenue and earnings than Strattec Security. Strattec Security is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Strattec Security and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Strattec Security	2.94%	10.06%	6.79%
Strattec Security Competitors	-41.06%	-0.39%	-2.06%

Summary

Strattec Security beats its peers on 7 of the 13 factors compared.

About Strattec Security

Strattec Security Corporation designs, develops, manufactures, and markets automotive access control products under the VAST Automotive Group brand primarily in North America. The company provides mechanical and electronically enhanced locks and keys, passive entry passive start systems, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power tailgate and lift gate systems, power deck lid systems, door handles, and related products. It also offers full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.