Cemtrex (NASDAQ:CETX) & Stoneridge (NYSE:SRI) Critical Survey
by Mitch Edgeman · The Markets DailyStoneridge (NYSE:SRI – Get Free Report) and Cemtrex (NASDAQ:CETX – Get Free Report) are both small-cap computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, profitability, risk, valuation, earnings and analyst recommendations.
Risk and Volatility
Stoneridge has a beta of 1.45, meaning that its stock price is 45% more volatile than the S&P 500. Comparatively, Cemtrex has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.
Earnings & Valuation
This table compares Stoneridge and Cemtrex”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Stoneridge | $861.26 million | 0.19 | -$102.83 million | ($3.70) | -1.56 |
| Cemtrex | $76.49 million | 0.10 | -$28.11 million | $61.65 | 0.01 |
Cemtrex has lower revenue, but higher earnings than Stoneridge. Stoneridge is trading at a lower price-to-earnings ratio than Cemtrex, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Stoneridge and Cemtrex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Stoneridge | -11.94% | -12.50% | -4.96% |
| Cemtrex | -25.25% | -127.57% | -30.65% |
Insider and Institutional Ownership
98.1% of Stoneridge shares are owned by institutional investors. Comparatively, 2.0% of Cemtrex shares are owned by institutional investors. 2.9% of Stoneridge shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Stoneridge and Cemtrex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Stoneridge | 1 | 0 | 1 | 0 | 2.00 |
| Cemtrex | 1 | 0 | 0 | 0 | 1.00 |
Stoneridge currently has a consensus price target of $16.00, indicating a potential upside of 177.06%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts clearly believe Stoneridge is more favorable than Cemtrex.
Summary
Stoneridge beats Cemtrex on 11 of the 14 factors compared between the two stocks.
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.
About Cemtrex
Cemtrex, Inc. engages in the provision of solutions in the technology industry. It operates through the following segments: Security, Industrial Services, and Cemtrex Corporate. The Security segment provides end-to-end security solutions to meet corporate, industrial, and governmental security challenges. The Industrial Services segment offers single-source expertise and services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly to diversified customers. The Cemtrex Corporate segment refers to the holding company of the other two segments. The company was founded on April 27, 1998 and is headquartered in Hauppauge, NY.