Comparing JTEKT (OTCMKTS:JTEKY) and Standard Motor Products (NYSE:SMP)

Standard Motor Products (NYSE:SMP) and JTEKT (OTCMKTS:JTEKY) are both consumer discretionary companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.

Profitability

This table compares Standard Motor Products and JTEKT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Motor Products	2.78%	13.28%	4.62%
JTEKT	N/A	N/A	N/A

Institutional & Insider Ownership

81.3% of Standard Motor Products shares are owned by institutional investors. Comparatively, 0.0% of JTEKT shares are owned by institutional investors. 5.5% of Standard Motor Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Standard Motor Products and JTEKT”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Motor Products	$1.79 billion	0.48	$41.33 million	$2.24	17.04
JTEKT	N/A	N/A	N/A	$370.33	0.11

Standard Motor Products has higher revenue and earnings than JTEKT. JTEKT is trading at a lower price-to-earnings ratio than Standard Motor Products, indicating that it is currently the more affordable of the two stocks.

Dividends

Standard Motor Products pays an annual dividend of $1.32 per share and has a dividend yield of 3.5%. JTEKT pays an annual dividend of $72.24 per share and has a dividend yield of 183.1%. Standard Motor Products pays out 58.9% of its earnings in the form of a dividend. JTEKT pays out 19.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Standard Motor Products has raised its dividend for 1 consecutive years. JTEKT is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for Standard Motor Products and JTEKT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	1	2	0	2.67
JTEKT	0	0	0	0	0.00

Standard Motor Products presently has a consensus target price of $49.00, indicating a potential upside of 28.37%. Given Standard Motor Products’ stronger consensus rating and higher probable upside, analysts clearly believe Standard Motor Products is more favorable than JTEKT.

Summary

Standard Motor Products beats JTEKT on 11 of the 14 factors compared between the two stocks.

About Standard Motor Products

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.

About JTEKT

JTEKT Corporation manufactures and sells steering systems, driveline components, bearings, machine tools, electronic control devices, home accessory equipment, etc. It offers steering systems, such as electric power steering, hydraulic power steering, and units/components; driveline components, including driveshaft, propeller shaft, spider, couplings, and Torsen limited slip differential products; wheels, such as hub units; engine and peripheral parts that include damper pulley and drive plates; and transmission products, such as electric pump for idle-stop system, shifters, and solenoid valves. The company also provides sensor systems comprising peripherals for social infrastructures; products for the research and development field, including semiconductor transducers, load cells, DC amplifiers, and pressure transducer for welding guns and indicators; medical equipment, such as pressure sensors for dialyzers; and heat-resistant lithium-ion capacitors. In addition, it offers ball and roller bearings; and oil seals and precision mechanical equipments. Further, the company provides machine tools, such as grinders, machining and gear skiving centers, and cutting machines. It offers its products under the JTEKT, KOYO, and TOYODA brands. The company operates in Japan, Africa, Europe, North America, Asia, Oceania, South America, and internationally. JTEKT Corporation was founded in 1921 and is headquartered in Aichi, Japan.