Stoneridge (SRI) & Allison Transmission (ALSN) Head to Head Contrast

Stoneridge (NYSE:SRI) and Allison Transmission (NYSE:ALSN) are both computer and technology companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Stoneridge and Allison Transmission, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 1 3 0 2.75
Allison Transmission 2 4 3 0 2.11

Stoneridge presently has a consensus target price of $35.33, suggesting a potential upside of 25.56%. Allison Transmission has a consensus target price of $47.88, suggesting a potential upside of 7.90%. Given Stoneridge’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stoneridge is more favorable than Allison Transmission.

Profitability

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

Net Margins Return on Equity Return on Assets
Stoneridge 5.84% 20.46% 9.94%
Allison Transmission 24.04% 97.36% 15.34%

Dividends

Allison Transmission pays an annual dividend of $0.60 per share and has a dividend yield of 1.4%. Stoneridge does not pay a dividend. Allison Transmission pays out 12.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

94.5% of Stoneridge shares are owned by institutional investors. 4.2% of Stoneridge shares are owned by company insiders. Comparatively, 9.0% of Allison Transmission shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Stoneridge has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 1.36, indicating that its share price is 36% more volatile than the S&P 500.

Valuation and Earnings

This table compares Stoneridge and Allison Transmission’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stoneridge $866.20 million 0.93 $53.85 million $1.99 14.14
Allison Transmission $2.71 billion 2.05 $639.00 million $4.78 9.28

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

Summary

Allison Transmission beats Stoneridge on 10 of the 15 factors compared between the two stocks.

Stoneridge Company Profile

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets. The company operates in three segments: Control Devices, Electronics, and PST. The Control Devices segment offers sensors, switches, valves, and actuators that monitor, measure, or activate specific functions within a vehicle. The Electronics segment provides electronic instrument clusters, electronic control units, and driver information systems, 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, monitor, and direct the operation of the electrical system within a vehicle. The PST segment offers in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle monitoring and tracking devices, and infotainment systems. It provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors and mass merchandisers for use in various vehicle platforms in North America, South America, Europe, and internationally. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.

Allison Transmission Company Profile

Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium- and heavy-tactical U.S. defense vehicles worldwide. It offers 12 transmission product lines for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school, transit, and hybrid-transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under Allison Transmission brand name; and remanufactured transmissions under ReTran brand name. It also sells branded replacement parts, support equipment, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. As of February 28, 2019, the company served customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.

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