Stoneridge (SRI) versus IOCHPE MAXION S/S (IOCJY) Critical Review

Stoneridge (NYSE:SRI) and IOCHPE MAXION S/S (OTCMKTS:IOCJY) are both small-cap computer and technology companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Risk & Volatility

Stoneridge has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, IOCHPE MAXION S/S has a beta of 1.28, suggesting that its share price is 28% more volatile than the S&P 500.

Earnings & Valuation

This table compares Stoneridge and IOCHPE MAXION S/S’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stoneridge $824.44 million 0.93 $45.17 million $1.57 17.20
IOCHPE MAXION S/S $2.35 billion 0.39 $2.00 million N/A N/A

Stoneridge has higher earnings, but lower revenue than IOCHPE MAXION S/S.

Dividends

IOCHPE MAXION S/S pays an annual dividend of $0.02 per share and has a dividend yield of 1.0%. Stoneridge does not pay a dividend.

Profitability

This table compares Stoneridge and IOCHPE MAXION S/S’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stoneridge 7.09% 21.77% 9.94%
IOCHPE MAXION S/S 0.11% 1.83% 0.61%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Stoneridge and IOCHPE MAXION S/S, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 1 4 0 2.80
IOCHPE MAXION S/S 0 0 0 0 N/A

Stoneridge presently has a consensus target price of $35.60, indicating a potential upside of 31.85%. Given Stoneridge’s higher possible upside, equities research analysts clearly believe Stoneridge is more favorable than IOCHPE MAXION S/S.

Insider and Institutional Ownership

93.8% of Stoneridge shares are owned by institutional investors. 4.4% of Stoneridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Stoneridge beats IOCHPE MAXION S/S on 9 of the 13 factors compared between the two stocks.

About Stoneridge

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, motorcycle, off-highway, and agricultural vehicle markets. It operates through three segments: Control Devices, Electronics, and PST. The Control Devices segment provides sensors, switches, valves, and actuators that monitor, measure, or activate specific functions within a vehicle. The Electronics segment offers electronic instrument clusters, electronic control units, and driver information systems, as well as camera-based vision systems, monitors, and related products. 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's power distribution modules and systems regulate, coordinate, and direct the operation of the electrical system within a vehicle. The PST segment provides in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, infotainment systems, and vehicle monitoring and tracking devices. It offers its products and systems to various OEM and tier one customers, as well as aftermarket distributors and mass merchandisers for use in various vehicle platforms. Stoneridge, Inc. operates in North America, South America, Europe, and internationally. The company was founded in 1965 and is headquartered in Novi, Michigan.

About IOCHPE MAXION S/S

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for light and commercial vehicles in North America, South America, Europe, and internationally. It operates through two segments, Wheels and Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-up trucks, and SUVs, as well as light and medium-sized commercial vehicles; and light aluminum wheels for vehicles. It also provides heavy structural components, including frames, sidebars, and crossbars; and metal stampings for commercial vehicles, as well as agricultural machinery and aluminum wheels for light vehicles. In addition, the company offers light structural and automotive components, such as metal stampings for passenger vehicles, brake levers, pedal sets, welded assemblies, structural parts, and other automotive components. Further, it produces freight cars, railway wheels, and castings, as well as industrial castings and freight cars. Iochpe-Maxion S.A. was founded in 1918 and is headquartered in Cruzeiro, Brazil.

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