Financial Survey: Stoneridge (SRI) and Adomani (ADOM)

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

Profitability

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

Net Margins Return on Equity Return on Assets
Stoneridge 5.84% 20.46% 9.94%
Adomani -169.52% -104.32% -73.03%

Institutional & Insider Ownership

94.4% of Stoneridge shares are owned by institutional investors. Comparatively, 2.6% of Adomani shares are owned by institutional investors. 4.2% of Stoneridge shares are owned by insiders. Comparatively, 30.1% of Adomani shares are owned by 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.

Risk and Volatility

Stoneridge has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500. Comparatively, Adomani has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stoneridge 0 1 3 0 2.75
Adomani 0 1 2 0 2.67

Stoneridge presently has a consensus target price of $35.33, suggesting a potential upside of 27.42%. Adomani has a consensus target price of $2.50, suggesting a potential upside of 575.68%. Given Adomani’s higher probable upside, analysts plainly believe Adomani is more favorable than Stoneridge.

Earnings & Valuation

This table compares Stoneridge and Adomani’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stoneridge $866.20 million 0.92 $53.85 million $1.99 13.93
Adomani $5.01 million 5.38 -$11.04 million ($0.15) -2.47

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

Summary

Stoneridge beats Adomani on 10 of the 14 factors compared between the two stocks.

About Stoneridge

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets. The company operates in three segments: Control Devices, Electronics, and PST. The Control Devices segment offers sensors, switches, valves, and actuators that monitor, measure, or activate specific functions within a vehicle. The Electronics segment provides electronic instrument clusters, electronic control units, and driver information systems, camera-based vision systems, monitors, and related products. 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's power distribution modules and systems regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The PST segment offers in-vehicle audio and video devices, electronic vehicle security alarms, convenience accessories, vehicle monitoring and tracking devices, and infotainment systems. It provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors and mass merchandisers for use in various vehicle platforms in North America, South America, Europe, and internationally. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.

About Adomani

ADOMANI, Inc. provides zero-emission electric and hybrid drivetrain systems for integration in new and existing school buses and medium to heavy-duty commercial fleet vehicles. Its products include traction motor/generator and motor controller, as well as power-flow set up for direct-drive configuration, which is a single speed gearbox, or a multi-gear ration transmission system. The company also offers lithium-ion battery packs, inverters, chargers, electrically driven systems for power steering and brakes, wiring harnesses, flat screen user-interface, and fleet technician diagnostic tools. ADOMANI, Inc. was founded in 2012 and is headquartered in Corona, California.

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