Stoneridge (SRI) vs. Gentherm (NASDAQ:THRM) Head to Head Review

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Stoneridge and Gentherm, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 1 1 0 2.50
Gentherm 0 4 4 0 2.50

Stoneridge currently has a consensus price target of $19.50, indicating a potential upside of 19.71%. Gentherm has a consensus price target of $40.43, indicating a potential upside of 32.77%. Given Gentherm’s higher possible upside, analysts plainly believe Gentherm is more favorable than Stoneridge.

Risk & Volatility

Stoneridge has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.

Institutional & Insider Ownership

87.7% of Stoneridge shares are owned by institutional investors. Comparatively, 98.0% of Gentherm shares are owned by institutional investors. 5.3% of Stoneridge shares are owned by insiders. Comparatively, 2.3% of Gentherm shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Stoneridge 10.12% 22.52% 9.17%
Gentherm 8.34% 16.34% 9.44%

Valuation & Earnings

This table compares Stoneridge and Gentherm’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Stoneridge $759.88 million 0.60 $85.94 million $2.70 6.03
Gentherm $961.81 million 1.17 $157.43 million $2.18 13.97

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

Summary

Gentherm beats Stoneridge on 9 of the 13 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.

Gentherm Company Profile

Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.

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