Standard Motor Products (NYSE: SMP) and Horizon Global (NYSE:HZN) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Earnings & Valuation
This table compares Standard Motor Products and Horizon Global’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Standard Motor Products||$1.12 billion||0.98||$37.97 million||$2.83||17.16|
|Horizon Global||$892.98 million||0.21||-$3.55 million||$0.98||7.80|
Institutional & Insider Ownership
82.5% of Standard Motor Products shares are owned by institutional investors. Comparatively, 80.0% of Horizon Global shares are owned by institutional investors. 6.6% of Standard Motor Products shares are owned by company insiders. Comparatively, 1.9% of Horizon Global shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Standard Motor Products pays an annual dividend of $0.84 per share and has a dividend yield of 1.7%. Horizon Global does not pay a dividend. Standard Motor Products pays out 29.7% of its earnings in the form of a dividend. Standard Motor Products has increased its dividend for 7 consecutive years.
This is a summary of current ratings and recommmendations for Standard Motor Products and Horizon Global, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Standard Motor Products||0||3||1||0||2.25|
Standard Motor Products presently has a consensus target price of $54.00, suggesting a potential upside of 11.23%. Horizon Global has a consensus target price of $13.58, suggesting a potential upside of 77.79%. Given Horizon Global’s stronger consensus rating and higher probable upside, analysts plainly believe Horizon Global is more favorable than Standard Motor Products.
This table compares Standard Motor Products and Horizon Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Standard Motor Products||2.66%||12.38%||6.89%|
Risk & Volatility
Standard Motor Products has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, Horizon Global has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.
Standard Motor Products beats Horizon Global on 13 of the 17 factors compared between the two stocks.
About Standard Motor Products
Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. Its Engine Management segment manufactures and distributes engine management replacement parts, including electronic ignition control modules, fuel injectors, remanufactured diesel injectors and pumps, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, various sensors primarily measuring temperature, vehicle systems, electronic throttle bodies, and other engine management components primarily under the Standard, Blue Streak, BWD, Select, Intermotor, OEM, LockSmart, TechSmart, Tech Expert, and GP Sorensen brands. The company's Temperature Control segment manufacture, remanufacture, and distribute replacement parts for automotive temperature control systems, engine cooling systems, power window accessories, and windshield washer systems, primarily under the Four Seasons, EVERCO, ACi, and Hayden brands. This segment provides new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, AC service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to large retail chains, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Latin America, and Europe. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.
About Horizon Global
Horizon Global Corporation designs, manufactures, and distributes a range of towing, trailering, cargo management, and other related accessory products to the automotive aftermarket, retail, and original equipment channels worldwide. It operates through three segments: Horizon Americas, Horizon Asia-Pacific, and Horizon Europe-Africa. The company provides towing products, such as hitches, fifth wheels, gooseneck hitches, weight distribution systems, wiring harnesses, draw bars, ball mounts, crossbars, towbars, security, and other towing accessories for attaching a trailer, camper, etc. It also offers trailering products, including brake controls, jacks, winches, couplers, interior and exterior vehicle lighting, and brake replacement parts. In addition, the company provides cargo management products, such as bike racks, roof cross bar systems, cargo carriers, luggage boxes, car interior protective products, ropes, tie-downs, tarps, bungee cords, loading ramps, and interior travel organizers. Further, it offers other products comprising tubular push and sports bars, side steps, skid plates, and oil pans. Horizon Global Corporation provides its products under the Reese, Hayman-Reese, Draw-Tite, and Westfalia, as well as Aqua Clear, Bulldog, BTM, DHF, Engetran, Fulton, Kovil, Parkside, Reese Secure, Reese Explorer, Reese Power Sports, Reese Towpower, ROLA, Tekonsha, Trojan, WesBarg, and Witter Towbar Systems brands. The company offers its products through original equipment manufacturers and suppliers, as well as aftermarket and retail customers in the agricultural, automotive, construction, fleet, horse/livestock, industrial, marine, military, recreational, trailer, and utility markets, and mining and municipalities; and serves end consumers through independent installers, warehouse distributors, dealers, original equipment, retail stores, and online retailers. Horizon Global Corporation was incorporated in 2015 is headquartered in Troy, Michigan.
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