Superior Industries International (NYSE: SUP) and Strattec Security (NASDAQ:STRT) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, profitability, valuation, dividends, institutional ownership and earnings.

Institutional and Insider Ownership

90.7% of Superior Industries International shares are held by institutional investors. Comparatively, 81.9% of Strattec Security shares are held by institutional investors. 1.5% of Superior Industries International shares are held by insiders. Comparatively, 7.1% of Strattec Security shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations for Superior Industries International and Strattec Security, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Industries International 0 1 3 0 2.75
Strattec Security 0 0 0 0 N/A

Superior Industries International currently has a consensus target price of $23.75, suggesting a potential upside of 25.00%. Given Superior Industries International’s higher possible upside, research analysts clearly believe Superior Industries International is more favorable than Strattec Security.

Volatility & Risk

Superior Industries International has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Strattec Security has a beta of 1.5, suggesting that its share price is 50% more volatile than the S&P 500.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 1.9%. Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.7%. Superior Industries International pays out 32.7% of its earnings in the form of a dividend.

Profitability

This table compares Superior Industries International and Strattec Security’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Industries International 0.08% 10.40% 3.11%
Strattec Security 2.34% 6.02% 3.69%

Valuation and Earnings

This table compares Superior Industries International and Strattec Security’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Industries International $1.11 billion 0.43 -$6.20 million $1.10 17.27
Strattec Security $417.33 million 0.28 $7.19 million N/A N/A

Strattec Security has lower revenue, but higher earnings than Superior Industries International.

Summary

Superior Industries International beats Strattec Security on 8 of the 14 factors compared between the two stocks.

Superior Industries International Company Profile

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers in North America. It supplies cast aluminum wheels to the automobile and light truck manufacturers. The company was founded in 1957 and is headquartered in Southfield, Michigan.

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 to Europe, Asia, and South America. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.

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