Critical Contrast: Stoneridge (NYSE:SRI) versus Atmus Filtration Technologies (NYSE:ATMU)

Atmus Filtration Technologies (NYSE:ATMU) and Stoneridge (NYSE:SRI) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, profitability, risk and dividends.

Earnings & Valuation

This table compares Atmus Filtration Technologies and Stoneridge”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Atmus Filtration Technologies	$1.67 billion	1.90	$185.60 million	$2.21	17.26
Stoneridge	$908.30 million	0.16	-$5.18 million	($0.60)	-8.59

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

Insider & Institutional Ownership

32.7% of Atmus Filtration Technologies shares are owned by institutional investors. Comparatively, 98.1% of Stoneridge shares are owned by institutional investors. 0.4% of Atmus Filtration Technologies shares are owned by insiders. Comparatively, 2.3% of Stoneridge shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Atmus Filtration Technologies has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500.

Profitability

This table compares Atmus Filtration Technologies and Stoneridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Atmus Filtration Technologies	11.12%	120.81%	17.99%
Stoneridge	-0.81%	-0.42%	-0.17%

Analyst Recommendations

This is a breakdown of current ratings for Atmus Filtration Technologies and Stoneridge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Atmus Filtration Technologies	0	1	4	0	2.80
Stoneridge	0	0	2	0	3.00

Atmus Filtration Technologies currently has a consensus target price of $42.40, indicating a potential upside of 11.16%. Stoneridge has a consensus target price of $16.00, indicating a potential upside of 210.38%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts plainly believe Stoneridge is more favorable than Atmus Filtration Technologies.

Summary

Atmus Filtration Technologies beats Stoneridge on 10 of the 14 factors compared between the two stocks.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.

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.