Financial Contrast: Standard Motor Products (SMP) versus Its Rivals

Standard Motor Products (NYSE:SMP) is one of 148 publicly-traded companies in the “Automobile Components” industry, but how does it compare to its rivals? We will compare Standard Motor Products to similar companies based on the strength of its analyst recommendations, institutional ownership, dividends, valuation, earnings, profitability and risk.

Dividends

Standard Motor Products pays an annual dividend of $1.32 per share and has a dividend yield of 2.9%. Standard Motor Products pays out 43.3% of its earnings in the form of a dividend. As a group, “Automobile Components” companies pay a dividend yield of 10.7% and pay out 24.2% of their earnings in the form of a dividend. Standard Motor Products has raised its dividend for 1 consecutive years. Standard Motor Products lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation and Earnings

This table compares Standard Motor Products and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Standard Motor Products	$1.85 billion	$41.33 million	14.72
Standard Motor Products Competitors	$6.55 billion	$70.54 million	5.29

Standard Motor Products’ rivals have higher revenue and earnings than Standard Motor Products. Standard Motor Products is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

81.3% of Standard Motor Products shares are held by institutional investors. Comparatively, 48.3% of shares of all “Automobile Components” companies are held by institutional investors. 5.5% of Standard Motor Products shares are held by company insiders. Comparatively, 19.6% of shares of all “Automobile Components” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Standard Motor Products and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Motor Products	2.78%	13.28%	4.62%
Standard Motor Products Competitors	-41.09%	-0.31%	-2.07%

Analyst Recommendations

This is a summary of recent recommendations for Standard Motor Products and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	1	2	0	2.67
Standard Motor Products Competitors	1083	4487	6122	202	2.46

Standard Motor Products presently has a consensus target price of $54.00, indicating a potential upside of 20.26%. As a group, “Automobile Components” companies have a potential upside of 74.42%. Given Standard Motor Products’ rivals higher probable upside, analysts plainly believe Standard Motor Products has less favorable growth aspects than its rivals.

Risk and Volatility

Standard Motor Products has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Standard Motor Products’ rivals have a beta of 3.83, suggesting that their average share price is 283% more volatile than the S&P 500.

Summary

Standard Motor Products rivals beat Standard Motor Products on 8 of the 15 factors compared.

Standard Motor Products Company Profile

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.