Critical Contrast: Standard Motor Products (SMP) versus Commercial Vehicle Group (CVGI)
Standard Motor Products (NYSE: SMP) and Commercial Vehicle Group (NASDAQ:CVGI) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, profitabiliy, dividends, institutional ownership and earnings.
Institutional and Insider 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 company insiders. Comparatively, 3.0% of Commercial Vehicle Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
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%|
Valuation and Earnings
This table compares Standard Motor Products and Commercial Vehicle Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Standard Motor Products||$1.10 billion||1.07||$149.40 million||$2.76||18.68|
|Commercial Vehicle Group||$655.24 million||0.40||$41.64 million||$0.16||53.07|
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.
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.
This is a breakdown of recent ratings and recommmendations for Standard Motor Products and Commercial Vehicle Group, as provided by MarketBeat.com.
|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 presently has a consensus price target of $52.00, suggesting a potential upside of 0.83%. Commercial Vehicle Group has a consensus price target of $8.50, suggesting a potential upside of 0.12%. Given Standard Motor Products’ higher possible upside, analysts plainly believe Standard Motor Products is more favorable than Commercial Vehicle Group.
Standard Motor Products beats Commercial Vehicle Group on 13 of the 15 factors compared between the two stocks.
Standard Motor Products Company Profile
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.
Commercial Vehicle Group Company Profile
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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