Critical Comparison: Stoneridge (NYSE:SRI) & ICZOOM Group (NASDAQ:IZM)

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

Risk & Volatility

ICZOOM Group has a beta of 2.04, meaning that its stock price is 104% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ICZOOM Group	N/A	N/A	N/A
Stoneridge	-3.66%	-8.78%	-3.48%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ICZOOM Group and Stoneridge, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICZOOM Group	1	0	0	0	1.00
Stoneridge	1	0	1	0	2.00

Stoneridge has a consensus target price of $16.00, indicating a potential upside of 167.92%. Given Stoneridge’s stronger consensus rating and higher probable upside, analysts clearly believe Stoneridge is more favorable than ICZOOM Group.

Earnings & Valuation

This table compares ICZOOM Group and Stoneridge”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICZOOM Group	$187.05 million	0.04	$1.19 million	N/A	N/A
Stoneridge	$908.29 million	0.18	-$16.52 million	($1.16)	-5.15

ICZOOM Group has higher earnings, but lower revenue than Stoneridge.

Institutional & Insider Ownership

34.3% of ICZOOM Group shares are held by institutional investors. Comparatively, 98.1% of Stoneridge shares are held by institutional investors. 2.9% of Stoneridge shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Stoneridge beats ICZOOM Group on 7 of the 12 factors compared between the two stocks.

About ICZOOM Group

ICZOOM Group Inc., together with its subsidiaries, sells electronic component products to customers in Hong Kong and the People's Republic of China. The company provides semiconductor products, including various integrated circuit, discretes, passive components, and optoelectronics; and equipment, tools, and other electronic component products comprising various electromechanical, maintenance, repair and operations, and various design tools. Its products are used by small and medium-sized enterprises in the consumer electronic industry, Internet of Things, automotive electronics, and industry control segment. The company sells its products through its online platform. It also offers customs clearance, temporary warehousing, logistic, and shipping services. The company was formerly known as Horizon Business Intelligence Co., Limited and changed its name to ICZOOM Group Inc. in May 2018. ICZOOM Group Inc. was founded in 2012 and is headquartered in Shenzhen, the People's Republic of China.

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.