Analyzing Stoneridge (SRI) & Commercial Vehicle Group (CVGI)

Stoneridge (NYSE: SRI) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap computer and technology companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Profitability

This table compares Stoneridge and Commercial Vehicle Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stoneridge 5.89% 20.81% 8.86%
Commercial Vehicle Group 0.94% 26.82% 5.31%

Earnings and Valuation

This table compares Stoneridge and Commercial Vehicle Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stoneridge $824.44 million 1.08 $45.17 million $1.57 19.88
Commercial Vehicle Group $755.23 million 0.35 -$1.70 million $0.44 19.34

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

Institutional and Insider Ownership

86.4% of Stoneridge shares are owned by institutional investors. Comparatively, 74.2% of Commercial Vehicle Group shares are owned by institutional investors. 4.4% of Stoneridge shares are owned by insiders. Comparatively, 3.0% of Commercial Vehicle Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Volatility and Risk

Stoneridge has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Stoneridge and Commercial Vehicle Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 2 2 0 2.50
Commercial Vehicle Group 0 0 0 0 N/A

Stoneridge currently has a consensus price target of $31.00, suggesting a potential downside of 0.67%. Given Stoneridge’s higher probable upside, research analysts clearly believe Stoneridge is more favorable than Commercial Vehicle Group.

Summary

Stoneridge beats Commercial Vehicle Group on 11 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 Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, engineers, produces, and sells a range of cab related products and systems in North America, Europe, and the Asia Pacific regions. It operates through two segments, the Global Truck and Bus, and the Global Construction and Agriculture. The Global Truck and Bus segment provides seats and seating systems, such as mechanical and air suspension, static, bus, and military seats, as well as seats for medium-and heavy-duty trucks (MD/HD trucks); and aftermarket seats and components. It also offers trim systems and components for the interior cabs of commercial vehicles, including vinyl or cloth-covered appliqués, armrests, map pocket compartments, carpets, and sound-reducing insulations; instrument panels; headliners/wall panels; storage systems; floor covering systems; sleeper bunks; grab handles and armrests; privacy curtains; and plastics decorating and finishing products, as well as exterior components for commercial recreational and specialty vehicles. In addition, this segment provides cab structures, sleeper boxes, body panels, structural components, bumper fascias and fender liners; and mirrors, wipers, and controls. The Global Construction and Agriculture segment provides electronic wire harness assemblies that function as current carrying devices used to provide electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial vehicles; and panel assemblies and cabinets. The company supplies its products and systems for the commercial vehicle market comprising the MD/HD truck market; the medium-and heavy-construction vehicle market; and the military, bus, agriculture, specialty transportation, mining, industrial equipment, and off-road recreational markets. Commercial Vehicle Group, Inc. was founded in 2000 and is headquartered in New Albany, Ohio.

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