Contrasting Stoneridge (SRI) & Harman International Industries (HAR)

Stoneridge (NYSE: SRI) and Harman International Industries (NYSE:HAR) are both auto, truck & motorcycle parts – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitability, risk and valuation.

Analyst Ratings

This is a summary of recent recommendations for Stoneridge and Harman International Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 2 0 0 2.00
Harman International Industries 0 3 0 0 2.00

Stoneridge currently has a consensus price target of $22.00, indicating a potential upside of 1.71%. Given Stoneridge’s higher possible upside, equities research analysts clearly believe Stoneridge is more favorable than Harman International Industries.

Profitability

This table compares Stoneridge and Harman International Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stoneridge 9.45% 20.37% 8.58%
Harman International Industries 5.12% 15.69% 6.40%

Earnings & Valuation

This table compares Stoneridge and Harman International Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Stoneridge $695.98 million 0.88 $77.46 million $2.62 8.26
Harman International Industries N/A N/A N/A $5.06 22.04

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

Dividends

Harman International Industries pays an annual dividend of $1.40 per share and has a dividend yield of 1.3%. Stoneridge does not pay a dividend. Harman International Industries pays out 27.7% of its earnings in the form of a dividend. Harman International Industries has increased its dividend for 6 consecutive years.

Risk and Volatility

Stoneridge has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Harman International Industries has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500.

Institutional and Insider Ownership

86.2% of Stoneridge shares are held by institutional investors. Comparatively, 85.8% of Harman International Industries shares are held by institutional investors. 5.3% of Stoneridge shares are held by company insiders. Comparatively, 0.9% of Harman International Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Stoneridge beats Harman International Industries on 8 of the 12 factors compared between the two stocks.

About Stoneridge

Stoneridge, Inc. is a designer and manufacturer of engineered electrical and electronic components, modules and systems for the automotive, commercial, motorcycle, off-highway and agricultural vehicle markets. The Company operates through three segments: Control Devices, Electronics and PST. The Company’s Control Devices segment designs and manufactures products that monitor, measure or activate specific functions within a vehicle and includes product lines, such as sensors, switches, valves, and actuators. The Company’s Electronics segment designs and manufactures electronic instrument clusters, electronic control units and driver information systems. The PST segment is engaged in the design, manufacture and sale of in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle tracking devices and monitoring services primarily for the automotive and motorcycle industry. It operated in 25 locations in 12 countries, as of December 31, 2016.

About Harman International Industries

Harman International Industries, Incorporated is engaged in the designing and engineering of connected products and solutions for automakers, consumers and enterprises, including connected car systems, audio and visual products, enterprise automation solutions and connected services. The Company’s segments include Connected Car, Lifestyle Audio, Professional Solutions, Connected Services and Other. The Connected Car segment designs, manufactures and markets connected car systems for vehicle applications. The Lifestyle Audio segment designs, manufactures and markets car audio systems. The Professional Solutions segment designs, manufactures and markets a range of audio, lighting, video and control, and automation solutions for entertainment and enterprise applications The Connected Services segment includes the operations of Symphony Teleca Corporation, Red Bend Ltd. and its automotive services businesses. Its brands include AKG, AMX, Crown, Infinity, JBL, Revel, Soundcraft and Studer.

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