Standard Motor Products (NYSE:SMP) & Lydall (NYSE:LDL) Critical Analysis

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

Dividends

Standard Motor Products pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. Lydall does not pay a dividend. Standard Motor Products pays out 36.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and target prices for Standard Motor Products and Lydall, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standard Motor Products 0 1 0 0 2.00
Lydall 0 1 1 0 2.50

Lydall has a consensus target price of $36.00, suggesting a potential upside of 45.87%. Given Lydall’s stronger consensus rating and higher probable upside, analysts plainly believe Lydall is more favorable than Standard Motor Products.

Volatility & Risk

Standard Motor Products has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500. Comparatively, Lydall has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares Standard Motor Products and Lydall’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Standard Motor Products $1.09 billion 1.05 $43.00 million $2.55 20.08
Lydall $785.90 million 0.55 $34.94 million N/A N/A

Standard Motor Products has higher revenue and earnings than Lydall.

Insider & Institutional Ownership

78.8% of Standard Motor Products shares are owned by institutional investors. Comparatively, 88.1% of Lydall shares are owned by institutional investors. 6.6% of Standard Motor Products shares are owned by insiders. Comparatively, 4.9% of Lydall shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Standard Motor Products 4.48% 13.71% 7.31%
Lydall 1.23% 8.04% 3.38%

Summary

Standard Motor Products beats Lydall on 9 of the 15 factors compared between the two stocks.

Standard Motor Products Company Profile

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company operates in two segments, Engine Management and Temperature Control. The Engine Management segment offers electronic ignition control modules, new and remanufactured fuel injectors, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, sensors, electronic throttle bodies, keyless entry transmitters, safety-related components, and other engine management components. It offers its products primarily under the Standard, Blue Streak, Intermotor, Standard Diesel, BWD Select, BWD, OEM, TechSmart, Tech Expert, GP Sorensen, LockSmart, and SMP Blue Streak brand names, as well as under private labels comprising NAPA Echlin NAPA Belden. The Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, EVERCO, ACI, Hayden, Pro Source, and Factory Air brands. It provides new and remanufactured air conditioning compressors, air conditioning compressor repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves and cores, A/C service tools and chemicals, fan assemblies and clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to automotive aftermarket retailers, program distribution groups, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Mexico, Europe, Asia, and other Latin American countries. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.

Lydall Company Profile

Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide. It operates through Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. The Performance Materials segment offers filtration media solutions for air, fluid power, and industrial applications, such as clean-space, commercial, HVAC, power generation, and industrial processes. This segment also provides non-woven veils, papers, and specialty composites for the building products, appliances, and energy and industrial markets; and life sciences filtration products for biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, water filtration, and high purity process filtration. The Technical Nonwovens segment offers nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. The Thermal Acoustical Solutions segment provides engineered products for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment, and lower harmful emissions, as well as assist in the reduction of noise, vibration, and harshness. Its products are used in the tunnel, fuel tank, wheel well, aerodynamic belly pan, and spare tire applications, as well as outer dash, powertrain, catalytic converter, turbo charger, and manifolds of cars, trucks, SUVs, heavy duty trucks, and recreational vehicles. This segment also offers thermal and acoustical insulating solutions comprising organic and inorganic fiber composites for the automotive markets. The company markets its products to original equipment manufacturers and tier-one suppliers through internal sales force and distribution network. Lydall, Inc. was founded in 1879 and is headquartered in Manchester, Connecticut.

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