Standard Motor Products (SMP) & Superior Industries International (SUP) Critical Review

Standard Motor Products (NYSE:SMP) and Superior Industries International (NYSE:SUP) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

Standard Motor Products has a beta of 1.66, meaning that its share price is 66% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500.

Earnings & Valuation

This table compares Standard Motor Products and Superior Industries International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Standard Motor Products $1.12 billion 0.88 $37.97 million $2.83 15.51
Superior Industries International $1.11 billion 0.28 -$6.20 million $1.10 11.32

Standard Motor Products has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Standard Motor Products, indicating that it is currently the more affordable of the two stocks.

Dividends

Standard Motor Products pays an annual dividend of $0.84 per share and has a dividend yield of 1.9%. Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.9%. Standard Motor Products pays out 29.7% of its earnings in the form of a dividend. Superior Industries International pays out 32.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Standard Motor Products has raised its dividend for 7 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Standard Motor Products and Superior Industries International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standard Motor Products 0 3 0 0 2.00
Superior Industries International 0 1 2 0 2.67

Standard Motor Products currently has a consensus price target of $48.00, indicating a potential upside of 9.39%. Superior Industries International has a consensus price target of $23.67, indicating a potential upside of 90.09%. Given Superior Industries International’s stronger consensus rating and higher probable upside, analysts clearly believe Superior Industries International is more favorable than Standard Motor Products.

Profitability

This table compares Standard Motor Products and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Standard Motor Products 2.66% 12.38% 6.89%
Superior Industries International 1.12% 10.77% 3.15%

Insider and Institutional Ownership

83.3% of Standard Motor Products shares are owned by institutional investors. Comparatively, 84.5% of Superior Industries International shares are owned by institutional investors. 6.6% of Standard Motor Products shares are owned by company insiders. Comparatively, 1.5% of Superior Industries International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Standard Motor Products beats Superior Industries International on 12 of the 17 factors compared between the two stocks.

About Standard Motor Products

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. Its Engine Management segment manufactures and distributes engine management replacement parts, including electronic ignition control modules, fuel injectors, remanufactured diesel injectors and pumps, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, various sensors primarily measuring temperature, vehicle systems, electronic throttle bodies, and other engine management components primarily under the Standard, Blue Streak, BWD, Select, Intermotor, OEM, LockSmart, TechSmart, Tech Expert, and GP Sorensen brands. The company's Temperature Control segment manufacture, remanufacture, and distribute replacement parts for automotive temperature control systems, engine cooling systems, power window accessories, and windshield washer systems, primarily under the Four Seasons, EVERCO, ACi, and Hayden brands. This segment provides new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, AC service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to large retail chains, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Latin America, and Europe. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.

About Superior Industries International

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers in North America. It supplies cast aluminum wheels to the automobile and light truck manufacturers. The company was founded in 1957 and is headquartered in Southfield, Michigan.

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