Head-To-Head Contrast: Surge Component (OTCMKTS:SPRS) & Stoneridge (NYSE:SRI)

Surge Component (OTCMKTS:SPRS) and Stoneridge (NYSE:SRI) are both small-cap computer and technology companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Surge Component	2.80%	4.98%	3.87%
Stoneridge	-15.24%	-22.50%	-8.17%

Valuation and Earnings

This table compares Surge Component and Stoneridge”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Surge Component	$36.32 million	0.57	$1.14 million	$0.18	19.67
Stoneridge	$861.26 million	0.23	-$102.83 million	($4.41)	-1.61

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

Volatility and Risk

Surge Component has a beta of 0.33, suggesting that its share price is 67% less volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.85, suggesting that its share price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Surge Component and Stoneridge, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Surge Component	0	0	0	0	0.00
Stoneridge	2	1	0	0	1.33

Stoneridge has a consensus price target of $16.00, suggesting a potential upside of 125.92%. Given Stoneridge’s stronger consensus rating and higher probable upside, analysts plainly believe Stoneridge is more favorable than Surge Component.

Institutional and Insider Ownership

98.1% of Stoneridge shares are owned by institutional investors. 56.0% of Surge Component shares are owned by company insiders. Comparatively, 11.0% of Stoneridge shares are owned 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

Surge Component beats Stoneridge on 8 of the 13 factors compared between the two stocks.

About Surge Component

Surge Components, Inc., together with its subsidiaries, supplies electronic products and components. It offers capacitors, which are electrical energy storage devices; and discrete semiconductor components, such as rectifiers, transistors, diodes, circuit protection devices, and audible components comprising audible transducers, Piezo buzzers, speakers, and microphones. The company also provides resonators, alarms, chimes, filters, and discriminators, as well as fuses, printed circuit boards, and switches. Its products are used in the electronic circuitry of various industries, including automotive, computer, communications, cellular telephones, consumer electronics, garage door openers, security equipment, audio equipment, telecom products, computer related products, power supply products, utility meters, and household appliances. The company sells its products to original equipment manufacturers and distributors through independent sales representatives or organizations in Canada, China, other Asian countries, South America, and Europe. Surge Components, Inc. was incorporated in 1981 and is headquartered in Deer Park, New York.

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.