Critical Review: TT Electronics (OTCMKTS:TTGPF) vs. Stoneridge (NYSE:SRI)

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

Risk & Volatility

TT Electronics has a beta of 0.54, suggesting that its share price is 46% less volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Valuation & Earnings

This table compares TT Electronics and Stoneridge”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TT Electronics	$665.93 million	0.37	-$68.24 million	N/A	N/A
Stoneridge	$908.29 million	0.24	-$16.52 million	($0.64)	-12.45

Stoneridge has higher revenue and earnings than TT Electronics.

Institutional and Insider Ownership

98.1% of Stoneridge shares are held by institutional investors. 2.9% of Stoneridge shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for TT Electronics and Stoneridge, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TT Electronics	0	2	0	0	2.00
Stoneridge	0	0	2	0	3.00

Stoneridge has a consensus target price of $16.00, indicating a potential upside of 100.75%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts plainly believe Stoneridge is more favorable than TT Electronics.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
TT Electronics	N/A	N/A	N/A
Stoneridge	-1.98%	-4.66%	-1.86%

Summary

Stoneridge beats TT Electronics on 8 of the 12 factors compared between the two stocks.

About TT Electronics

TT Electronics plc provides design-led advanced electronics technologies for performance critical applications in the healthcare, aerospace and defense, and automation and electrification markets in the United Kingdom, Rest of Europe, North America, Asia, and internationally. The company operates through three segments: Power and Connectivity, Global Manufacturing Solutions, and Sensors and Specialist Components. The Power and Connectivity segment designs and manufactures power application products and connectivity devices, which enable the capture and wireless transfer of data to optimize electronic systems. The Global Manufacturing Solutions segment provides manufacturing services and engineering solutions for its product divisions and to customers that require a lower volume and higher mix of various products. This segment manufactures integrated product assemblies, as well as provides engineering services, including designing testing solutions and value-engineering. The Sensors and Specialist Components segment develops standard and customized solutions, including sensors and power management devices. Its solutions enhance the precision, speed, and reliability of critical aspects of its customers applications. It offers its products and services under the AB Connectors, Aero Stanrew, BI Technologies, Ferranti, IRC, Optek Technology, Precision, Power Partners, PowerPax, Roxspur Measurement and Control, Semelab, Stontronics, Torotel, and Welwyn brands. The company was formerly known as TT Group plc and changed its name to TT Electronics plc in 2000. The company was incorporated in 1906 and is headquartered in Woking, the United Kingdom.

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.