Strattec Security (NASDAQ:STRT) and LCI Industries (NYSE:LCII) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.
Risk and Volatility
Strattec Security has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.
This table compares Strattec Security and LCI Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings for Strattec Security and LCI Industries, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
LCI Industries has a consensus target price of $103.25, indicating a potential upside of 45.77%. Given LCI Industries’ higher probable upside, analysts clearly believe LCI Industries is more favorable than Strattec Security.
Valuation & Earnings
This table compares Strattec Security and LCI Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Strattec Security||$439.20 million||0.26||$12.28 million||N/A||N/A|
|LCI Industries||$2.15 billion||0.83||$132.88 million||$5.76||12.30|
LCI Industries has higher revenue and earnings than Strattec Security.
Insider and Institutional Ownership
77.9% of Strattec Security shares are owned by institutional investors. Comparatively, 97.3% of LCI Industries shares are owned by institutional investors. 7.1% of Strattec Security shares are owned by company insiders. Comparatively, 3.6% of LCI Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.9%. LCI Industries pays an annual dividend of $2.40 per share and has a dividend yield of 3.4%. LCI Industries pays out 41.7% of its earnings in the form of a dividend.
LCI Industries beats Strattec Security on 11 of the 14 factors compared between the two stocks.
Strattec Security Company Profile
Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products under the VAST brand primarily in the United States. The company offers 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. It also provides full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products Canada, Mexico, Europe, South America, Korea, China, and India. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.
LCI Industries Company Profile
LCI Industries, along with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures or distributes various components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; televisions and sound systems; navigation systems; backup cameras; and other accessories. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. It also sells replacement glass and awnings to fulfill insurance claims. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1962 and is based in Elkhart, Indiana.
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