Contrasting Stoneridge (SRI) & Autoliv (ALV)

Stoneridge (NYSE: SRI) and Autoliv (NYSE:ALV) are both cyclical consumer goods & services companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Profitability

This table compares Stoneridge and Autoliv’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stoneridge 9.45% 20.37% 8.58%
Autoliv 4.96% 13.42% 6.50%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Stoneridge and Autoliv, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 2 0 0 2.00
Autoliv 4 10 8 0 2.18

Stoneridge presently has a consensus price target of $22.00, suggesting a potential downside of 8.49%. Autoliv has a consensus price target of $111.23, suggesting a potential downside of 14.95%. Given Stoneridge’s higher possible upside, equities analysts plainly believe Stoneridge is more favorable than Autoliv.

Institutional & Insider Ownership

87.0% of Stoneridge shares are held by institutional investors. Comparatively, 33.5% of Autoliv shares are held by institutional investors. 5.3% of Stoneridge shares are held by company insiders. Comparatively, 0.3% of Autoliv shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Autoliv pays an annual dividend of $2.40 per share and has a dividend yield of 1.8%. Stoneridge does not pay a dividend. Autoliv pays out 41.4% of its earnings in the form of a dividend. Stoneridge has increased its dividend for 8 consecutive years.

Earnings & Valuation

This table compares Stoneridge and Autoliv’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stoneridge $695.98 million 0.97 $77.46 million $2.62 9.18
Autoliv $10.07 billion 1.13 $567.10 million $5.80 22.55

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

Risk and Volatility

Stoneridge has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Autoliv has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Summary

Stoneridge beats Autoliv on 9 of the 17 factors compared between the two stocks.

Stoneridge Company Profile

Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.

Autoliv Company Profile

Autoliv, Inc. is a supplier of automotive safety systems with a range of product offerings, including passive safety systems and active safety systems. The Company operates through two segments: Passive Safety and Electronics. The Passive safety products include modules and components for passenger and driver-side airbags, side-impact airbag protection systems, seatbelts, steering wheels, inflator technologies, whiplash protection systems and child seats, and components for such systems, as well as passive safety electronic products, such as restraint electronics and crash sensors. The Active safety products include camera-based vision systems, night driving assist, automotive radars, brake controls, positioning systems, electronic control units, and other active safety systems. As of December 31, 2016, including joint venture operations, the Company had approximately 78 production facilities in 25 countries, consisting of both component factories and assembly factories.

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