Standard Motor Products (NYSE: SMP) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, dividends, earnings, profitabiliy and institutional ownership.

Earnings and Valuation

This table compares Standard Motor Products and Commercial Vehicle Group’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Standard Motor Products $1.10 billion 1.08 $149.40 million $2.76 18.80
Commercial Vehicle Group $655.24 million 0.40 $41.64 million $0.16 52.57

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

Volatility & Risk

Standard Motor Products has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500.

Dividends

Standard Motor Products pays an annual dividend of $0.76 per share and has a dividend yield of 1.5%. Commercial Vehicle Group does not pay a dividend. Standard Motor Products pays out 27.5% of its earnings in the form of a dividend. Standard Motor Products has raised its dividend for 6 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Standard Motor Products 5.80% 15.57% 8.55%
Commercial Vehicle Group 0.74% 11.58% 1.88%

Analyst Ratings

This is a summary of current ratings and target prices for Standard Motor Products and Commercial Vehicle Group, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standard Motor Products 0 0 1 0 3.00
Commercial Vehicle Group 0 0 1 0 3.00

Standard Motor Products currently has a consensus price target of $52.00, indicating a potential upside of 0.21%. Commercial Vehicle Group has a consensus price target of $8.50, indicating a potential upside of 1.07%. Given Commercial Vehicle Group’s higher probable upside, analysts plainly believe Commercial Vehicle Group is more favorable than Standard Motor Products.

Insider and Institutional Ownership

77.7% of Standard Motor Products shares are owned by institutional investors. Comparatively, 61.9% of Commercial Vehicle Group shares are owned by institutional investors. 6.6% of Standard Motor Products shares are owned by insiders. Comparatively, 3.0% of Commercial Vehicle Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Standard Motor Products beats Commercial Vehicle Group on 12 of the 15 factors compared between the two stocks.

About Standard Motor Products

Standard Motor Products, Inc. is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The Company’s segments include Engine Management Segment and Temperature Control Segment. The Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. The Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts. The Company sells its products primarily to warehouse distributors, large retail chains, original equipment manufacturers and original equipment service part operations in the United States, Canada, Latin America and Europe.

About Commercial Vehicle Group

Commercial Vehicle Group, Inc. is a supplier of a range of cab-related products and systems. The Company operates through two segments: the Global Truck and Bus Segment (GTB Segment) and the Global Construction and Agriculture Segment (GCA Segment). The GTB Segment manufactures and sells products, which include Seats, Trim, sleeper boxes, cab structures, structural components and body panels, and mirrors and wiper systems. The GCA Segment manufactures and sells the products, which include Electronic wire harness assemblies and Seats, Wiper systems, Office seating, and Aftermarket seats and components. It supplies products for the commercial vehicle market, including the medium-and heavy-duty truck market, the medium-and heavy-construction vehicle market, and the military, bus, agriculture, mining, industrial equipment and off-road recreational markets. It has manufacturing operations in the United States, Mexico, the United Kingdom, Czech Republic, Ukraine, China, India and Australia.

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