Stoneridge (NYSE:SRI) & Cemtrex (NASDAQ:CETX) Financial Contrast

Stoneridge (NYSE:SRI) and Cemtrex (NASDAQ:CETX) are both small-cap computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoneridge	$861.26 million	0.18	-$102.83 million	($3.70)	-1.48
Cemtrex	$76.49 million	0.09	-$28.11 million	$61.65	0.01

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

Analyst Recommendations

This is a summary of current ratings and price targets for Stoneridge and Cemtrex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoneridge	1	1	0	0	1.50
Cemtrex	1	0	0	0	1.00

Stoneridge presently has a consensus price target of $16.00, suggesting a potential upside of 192.24%. Given Stoneridge’s stronger consensus rating and higher probable upside, equities analysts plainly believe Stoneridge is more favorable than Cemtrex.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stoneridge	-11.94%	-13.49%	-5.14%
Cemtrex	-25.25%	-127.57%	-30.65%

Risk and Volatility

Stoneridge has a beta of 1.45, suggesting that its share price is 45% more volatile than the S&P 500. Comparatively, Cemtrex has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Insider and Institutional Ownership

98.1% of Stoneridge shares are owned by institutional investors. Comparatively, 2.0% of Cemtrex shares are owned by institutional investors. 2.9% of Stoneridge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Stoneridge beats Cemtrex on 10 of the 13 factors compared between the two stocks.

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.

About Cemtrex

Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.