Critical Comparison: Stoneridge (NYSE:SRI) versus TDK (OTCMKTS:TTDKY)

TDK (OTCMKTS:TTDKY) and Stoneridge (NYSE:SRI) are both computer and technology companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, analyst recommendations, dividends, risk, profitability, institutional ownership and earnings.

Earnings & Valuation

This table compares TDK and Stoneridge”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TDK	$14.48 billion	1.65	$1.10 billion	$0.61	20.10
Stoneridge	$908.29 million	0.18	-$16.52 million	($1.16)	-4.90

TDK has higher revenue and earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than TDK, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares TDK and Stoneridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TDK	7.55%	9.32%	4.65%
Stoneridge	-3.66%	-8.78%	-3.48%

Analyst Recommendations

This is a summary of current ratings and recommmendations for TDK and Stoneridge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TDK	0	0	0	0	0.00
Stoneridge	1	0	1	0	2.00

Stoneridge has a consensus price target of $16.00, suggesting a potential upside of 181.54%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts plainly believe Stoneridge is more favorable than TDK.

Insider & Institutional Ownership

98.1% of Stoneridge shares are owned by institutional investors. 0.0% of TDK shares are owned by insiders. Comparatively, 2.9% of Stoneridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

TDK has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.52, suggesting that its stock price is 52% more volatile than the S&P 500.

Summary

TDK beats Stoneridge on 8 of the 14 factors compared between the two stocks.

About TDK

TDK Corporation, together with its subsidiaries, engages in manufacture and sale of electronic components in Japan, Europe, China, Asia, the Americas, and internationally. The company operates through Passive Components, Sensor Application Products, Magnetic Application Products, Energy Application Products, and Other segments. The Passive Components segment offers ceramic capacitors, aluminum electrolytic capacitors, film capacitors, high-frequency components, piezoelectric materials, and circuit protection components, as well as inductive devices, including ferrite cores, coils, and transformers. The Sensor Application Products segment provides temperature and pressure, magnetic, and MEMS sensors. The Magnetic Application Products segment offers hard disk drives (HDD) heads, HDD suspension assemblies, and magnets. The Energy Application Products segment provides energy devices comprising rechargeable batteries, and power supplies. The Other segment provides mechatronics production equipment and camera module micro actuators for smartphones and other products. The company also engages in engages in insurance and real estate agency businesses. The company was formerly known as Tokyo Denki Kagaku Kogyo K.K. and changed its name to TDK Corporation in 1983. TDK Corporation was founded in 1935 and is headquartered in Tokyo, Japan.

About Stoneridge

Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company operates through three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers actuators, sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment also offers electronic control units that regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories, including parking sensors and rearview cameras; in-vehicle audio and infotainment devices; and driver information systems and telematics solutions. The company provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.