Critical Analysis: Stoneridge (NYSE:SRI) vs. ICZOOM Group (NASDAQ:IZM)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoneridge	$908.29 million	0.19	-$16.52 million	($1.16)	-5.31
ICZOOM Group	$187.05 million	0.04	$1.19 million	N/A	N/A

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

Insider & Institutional Ownership

98.1% of Stoneridge shares are held by institutional investors. Comparatively, 34.3% of ICZOOM Group shares are held by institutional investors. 2.9% of Stoneridge shares are held by 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.

Volatility and Risk

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Stoneridge and ICZOOM Group, as reported by MarketBeat.com.

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

Stoneridge presently has a consensus price target of $16.00, suggesting a potential upside of 159.53%. Given Stoneridge’s stronger consensus rating and higher possible upside, analysts plainly believe Stoneridge is more favorable than ICZOOM Group.

Profitability

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

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

Summary

Stoneridge beats ICZOOM Group on 7 of the 12 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 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.