Schaeffler (OTCMKTS:SFFLY) vs. Standard Motor Products (NYSE:SMP) Financial Contrast

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

Insider and Institutional Ownership

81.3% of Standard Motor Products shares are owned by institutional investors. 5.5% of Standard Motor Products shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Standard Motor Products and Schaeffler’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%
Schaeffler	N/A	N/A	N/A

Valuation & Earnings

This table compares Standard Motor Products and Schaeffler”s top-line 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
Schaeffler	N/A	N/A	N/A	N/A	N/A

Standard Motor Products has higher revenue and earnings than Schaeffler.

Analyst Ratings

This is a summary of current ratings and target prices for Standard Motor Products and Schaeffler, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	1	2	0	2.67
Schaeffler	0	1	0	0	2.00

Standard Motor Products currently has a consensus price target of $49.00, suggesting a potential upside of 28.37%. Given Standard Motor Products’ stronger consensus rating and higher possible upside, equities analysts plainly believe Standard Motor Products is more favorable than Schaeffler.

Summary

Standard Motor Products beats Schaeffler on 9 of the 9 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 Schaeffler

Schaeffler AG, together with its subsidiaries, develops, manufactures, and sells components and system for industrial applications in Europe, the Americas, China, and the Asia Pacific. The Automotive Technologies division offers mechanical, mechatronic, and electronic components and systems for powertrain electrification used in passenger cars and commercial vehicles, such as electric motors, axle transmissions, axle drives, power electronics, hybrid modules, electromechanical and hydraulic actuators, and thermal management module; torque converters, hybrid dampers, clutches, variable valve train systems, valve-lash adjustment elements, balancer shafts, camshaft phasing systems, timing drives, and front end auxillary drives. This division provides rolling bearing application and products, such as wheel, ball, and needle roller bearings; and mechanical components and mechatronic systems for steering and other chassis applications, including Space Drive, a steer-by-wire system. The Automotive Aftermarket division offers components and repair solutions for light commercial vehicles, trucks and buses, and offroad sectors under the LuK, INA, and FAG brand names, as well as service for repair shops under the REPXPERT brand. The Industrial division develops and manufactures rotary and linear bearing solutions, drive technology components and systems, and service solutions, such as sensor-based condition monitoring systems. This division serves customers in the wind, raw materials, aerospace, rail, offroad, two wheelers, power transmission, and industrial automation sectors. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.