Financial Contrast: Stoneridge (NYSE:SRI) & Ostin Technology Group (NASDAQ:OST)

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ostin Technology Group and Stoneridge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ostin Technology Group	1	0	0	0	1.00
Stoneridge	2	1	0	0	1.33

Stoneridge has a consensus price target of $16.00, suggesting a potential upside of 126.34%. Given Stoneridge’s stronger consensus rating and higher probable upside, analysts clearly believe Stoneridge is more favorable than Ostin Technology Group.

Earnings and Valuation

This table compares Ostin Technology Group and Stoneridge”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ostin Technology Group	$39.68 million	0.26	-$10.02 million	N/A	N/A
Stoneridge	$861.26 million	0.23	-$102.83 million	($4.41)	-1.60

Ostin Technology Group has higher earnings, but lower revenue than Stoneridge.

Risk & Volatility

Ostin Technology Group has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500.

Institutional & Insider Ownership

21.9% of Ostin Technology Group shares are held by institutional investors. Comparatively, 98.1% of Stoneridge shares are held by institutional investors. 44.8% of Ostin Technology Group shares are held by company insiders. Comparatively, 11.0% of Stoneridge shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares Ostin Technology Group and Stoneridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ostin Technology Group	N/A	N/A	N/A
Stoneridge	-15.24%	-22.50%	-8.17%

Summary

Ostin Technology Group beats Stoneridge on 6 of the 11 factors compared between the two stocks.

About Ostin Technology Group

Ostin Technology Group Co., Ltd. designs, develops, and manufactures thin-film transistor liquid crystal display (TFT-LCD) modules and polarizers in China. It offers display modules to markets, such as consumer electronics, including AIOs, monitors, laptop computers, and tablets; automotive displays, including dashboard, and navigation and multimedia systems; and commercial LCD displays, which are used to display multimedia graphics, such as company advertisements, promotions, scoreboards, and traffic signs in education, medical treatment, business, outdoor, and cultural construction industries. The company sells its products directly to customers, as well as to customers' designated system integrators. Ostin Technology Group Co., Ltd. was founded in 2010 and is based in Nanjing, China.

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.