Clean Diesel Technologies (NASDAQ: CDTI) and Strattec Security Corporation (NASDAQ:STRT) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.

Volatility & Risk

Clean Diesel Technologies has a beta of 2.84, suggesting that its share price is 184% more volatile than the S&P 500. Comparatively, Strattec Security Corporation has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Earnings & Valuation

This table compares Clean Diesel Technologies and Strattec Security Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Clean Diesel Technologies $35.30 million 0.95 -$6.06 million ($3.36) -0.63
Strattec Security Corporation $417.33 million 0.32 $25.12 million $1.96 18.98

Strattec Security Corporation has higher revenue and earnings than Clean Diesel Technologies. Clean Diesel Technologies is trading at a lower price-to-earnings ratio than Strattec Security Corporation, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Clean Diesel Technologies and Strattec Security Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Clean Diesel Technologies -72.31% -116.29% -34.01%
Strattec Security Corporation 1.72% 4.53% 2.86%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Clean Diesel Technologies and Strattec Security Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Clean Diesel Technologies 0 1 2 0 2.67
Strattec Security Corporation 0 0 0 0 N/A

Clean Diesel Technologies presently has a consensus target price of $4.00, indicating a potential upside of 87.79%. Given Clean Diesel Technologies’ higher possible upside, equities analysts clearly believe Clean Diesel Technologies is more favorable than Strattec Security Corporation.

Dividends

Strattec Security Corporation pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Clean Diesel Technologies does not pay a dividend. Strattec Security Corporation pays out 28.6% of its earnings in the form of a dividend.

Institutional and Insider Ownership

1.3% of Clean Diesel Technologies shares are held by institutional investors. Comparatively, 83.2% of Strattec Security Corporation shares are held by institutional investors. 5.3% of Clean Diesel Technologies shares are held by company insiders. Comparatively, 6.8% of Strattec Security Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Strattec Security Corporation beats Clean Diesel Technologies on 9 of the 14 factors compared between the two stocks.

About Clean Diesel Technologies

Clean Diesel Technologies, Inc. commercializes its material technology by manufacturing and distributing light duty vehicle catalysts, and heavy duty diesel emissions control systems and products to automakers, distributors, integrators and retrofitters. The Company operates through two business division segments: Catalyst, which develops and produces catalysts to reduce emissions from gasoline, diesel and natural gas combustion engines, and Heavy Duty Diesel Systems, which designs and manufactures verified exhaust emissions control solutions for a range of heavy duty diesel applications. It develops materials incorporating various base metals that replace platinum group metals (PGM) and rare earth metals in coatings on vehicle catalytic converters. Its technologies include Spinel, base-metal activated rhodium on Support, mixed phase catalyst, synergized PGM diesel oxidation catalyst (SPGM DOC), Platinum Plus, ARIS, and Exhaust Gas Recirculation and Selective Catalytic Reduction.

About Strattec Security Corporation

Strattec Security Corporation designs, develops, manufactures and markets automotive access control products. The Company offers access control products, including mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles and related products for North American automotive customers. The Company supplies its products under the VAST brand name. The Company’s products are shipped to customer locations in the United States, Canada, Mexico, Europe, South America, Korea and China, and it also provides full service and aftermarket support. The Company provides its customers with engineered access control products, including locksets, fobs, push button ignition systems, steering column lock housings, seatback and secondary power liftgate systems, power decklids, door handles, and trim and other access products.

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