Head-To-Head Comparison: Standard Motor Products (NYSE:SMP) versus ECARX (NASDAQ:ECX)

Standard Motor Products (NYSE:SMP) and ECARX (NASDAQ:ECX) are both small-cap consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Earnings and Valuation

This table compares Standard Motor Products and ECARX”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Motor Products	$1.79 billion	0.48	$41.33 million	$2.04	18.75
ECARX	$847.90 million	0.45	-$66.04 million	($0.15)	-7.07

Standard Motor Products has higher revenue and earnings than ECARX. ECARX 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Standard Motor Products	2.51%	12.98%	4.50%
ECARX	-6.23%	N/A	-8.48%

Risk & Volatility

Standard Motor Products has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, ECARX has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	1	2	0	2.67
ECARX	1	1	0	0	1.50

Standard Motor Products presently has a consensus target price of $49.00, indicating a potential upside of 28.09%. Given Standard Motor Products’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Standard Motor Products is more favorable than ECARX.

Institutional & Insider Ownership

81.3% of Standard Motor Products shares are owned by institutional investors. 5.5% of Standard Motor Products shares are owned by insiders. Comparatively, 20.0% of ECARX shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Standard Motor Products beats ECARX on 12 of the 14 factors compared between the two stocks.

About Standard Motor Products

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.

About ECARX

ECARX Holdings Inc. develops a full stack automotive computing platform to shape the interaction between people and cars by rapidly advancing the technology by smart mobility worldwide. It offers system on chips, central computing platforms, operating systems, and software. Its core products include infotainment head units, digital cockpits, vehicle chip-set solutions, core operating system, and integrated software stack. The company has entered into a strategic partnership agreement with Black Sesame Technologies. The company is based in Shanghai, the People's Republic of China.