Critical Comparison: Sypris Solutions (SYPR) and Its Peers

Sypris Solutions (NASDAQ:SYPR) is one of 229 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its competitors? We will compare Sypris Solutions to similar companies based on the strength of its institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.

Institutional & Insider Ownership

44.7% of Sypris Solutions shares are held by institutional investors. Comparatively, 49.5% of shares of all “Aerospace & Defense” companies are held by institutional investors. 47.9% of Sypris Solutions shares are held by company insiders. Comparatively, 11.9% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Sypris Solutions and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Sypris Solutions	$119.89 million	-$6.34 million	-2.60
Sypris Solutions Competitors	$8.42 billion	$569.01 million	23.98

Sypris Solutions’ competitors have higher revenue and earnings than Sypris Solutions. Sypris Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Sypris Solutions and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sypris Solutions	1	0	0	0	1.00
Sypris Solutions Competitors	2152	8250	12739	579	2.50

As a group, “Aerospace & Defense” companies have a potential upside of 34.12%. Given Sypris Solutions’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Sypris Solutions has less favorable growth aspects than its competitors.

Profitability

This table compares Sypris Solutions and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Sypris Solutions	-9.23%	-67.14%	-9.87%
Sypris Solutions Competitors	-278.19%	-46.45%	-4.02%

Volatility and Risk

Sypris Solutions has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500. Comparatively, Sypris Solutions’ competitors have a beta of 1.31, meaning that their average share price is 31% more volatile than the S&P 500.

Summary

Sypris Solutions competitors beat Sypris Solutions on 10 of the 12 factors compared.

About Sypris Solutions

Sypris Solutions, Inc. engages in the provision of truck components, oil and gas pipeline components, and aerospace and defense electronics. It operates through Sypris Technologies and Sypris Electronics segments. The Sypris Technologies segment is involved in selling of forged, machined, welded, and heat-treated steel components primarily for the heavy commercial vehicle and high-pressure energy pipeline applications. The Sypris Electronics segment includes circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability and design to specification work. The company was founded in 1997 and is headquartered in Louisville, KY.