Superior Industries International (SUP) and Sorl Auto Parts (SORL) Critical Review

Superior Industries International (NYSE:SUP) and Sorl Auto Parts (NASDAQ:SORL) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Profitability

This table compares Superior Industries International and Sorl Auto Parts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Superior Industries International 0.88% 9.82% 2.76%
Sorl Auto Parts 2.63% 11.20% 3.27%

Analyst Ratings

This is a summary of recent recommendations and price targets for Superior Industries International and Sorl Auto Parts, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Superior Industries International 0 1 3 0 2.75
Sorl Auto Parts 0 0 0 0 N/A

Superior Industries International presently has a consensus price target of $13.25, indicating a potential upside of 177.78%. Given Superior Industries International’s higher possible upside, analysts plainly believe Superior Industries International is more favorable than Sorl Auto Parts.

Volatility & Risk

Superior Industries International has a beta of 1.96, meaning that its share price is 96% more volatile than the S&P 500. Comparatively, Sorl Auto Parts has a beta of 2.44, meaning that its share price is 144% more volatile than the S&P 500.

Institutional & Insider Ownership

84.0% of Superior Industries International shares are held by institutional investors. Comparatively, 5.7% of Sorl Auto Parts shares are held by institutional investors. 2.6% of Superior Industries International shares are held by company insiders. Comparatively, 58.9% of Sorl Auto Parts shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Superior Industries International and Sorl Auto Parts’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Superior Industries International $1.11 billion 0.11 -$6.20 million $1.10 4.34
Sorl Auto Parts $390.52 million 0.14 $24.32 million $1.26 2.32

Sorl Auto Parts has lower revenue, but higher earnings than Superior Industries International. Sorl Auto Parts is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.

Dividends

Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 7.5%. Sorl Auto Parts does not pay a dividend. Superior Industries International pays out 32.7% of its earnings in the form of a dividend.

Summary

Sorl Auto Parts beats Superior Industries International on 9 of the 15 factors compared between the two stocks.

About Superior Industries International

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers in North America. It supplies cast aluminum wheels to the automobile and light truck manufacturers. The company was founded in 1957 and is headquartered in Southfield, Michigan.

About Sorl Auto Parts

SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers and the related aftermarket in the People's Republic of China. It operates through two segments, Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. The company offers a range of products covering 65 categories and approximately 2000 specifications in automotive brake systems that are principally used in various types of commercial vehicles, such as trucks and buses. SORL Auto Parts, Inc. markets its products under the SORL brand through authorized distributors. The company exports its products to approximately 104 countries and regions. SORL Auto Parts, Inc. was founded in 2003 and is headquartered in Rui'an, the People's Republic of China.

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