Comparing American Axle & Manufact. (NYSE:AXL) & Standard Motor Products (NYSE:SMP)

American Axle & Manufact. (NYSE:AXL) and Standard Motor Products (NYSE:SMP) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.

Profitability

This table compares American Axle & Manufact. and Standard Motor Products’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Axle & Manufact. -5.77% 14.79% 2.96%
Standard Motor Products 4.35% 14.40% 7.58%

Analyst Ratings

This is a summary of recent ratings and price targets for American Axle & Manufact. and Standard Motor Products, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Axle & Manufact. 0 4 4 0 2.50
Standard Motor Products 0 0 0 0 N/A

American Axle & Manufact. currently has a consensus target price of $15.83, indicating a potential upside of 60.58%. Given American Axle & Manufact.’s higher probable upside, equities research analysts plainly believe American Axle & Manufact. is more favorable than Standard Motor Products.

Institutional & Insider Ownership

99.4% of American Axle & Manufact. shares are held by institutional investors. Comparatively, 79.0% of Standard Motor Products shares are held by institutional investors. 1.3% of American Axle & Manufact. shares are held by insiders. Comparatively, 6.6% of Standard Motor Products shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares American Axle & Manufact. and Standard Motor Products’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Axle & Manufact. $7.27 billion 0.15 -$57.50 million $3.28 3.01
Standard Motor Products $1.09 billion 1.04 $43.00 million $2.55 19.75

Standard Motor Products has lower revenue, but higher earnings than American Axle & Manufact.. American Axle & Manufact. 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.

Volatility and Risk

American Axle & Manufact. has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, Standard Motor Products has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Dividends

Standard Motor Products pays an annual dividend of $0.92 per share and has a dividend yield of 1.8%. American Axle & Manufact. does not pay a dividend. Standard Motor Products pays out 36.1% of its earnings in the form of a dividend.

Summary

American Axle & Manufact. beats Standard Motor Products on 8 of the 15 factors compared between the two stocks.

American Axle & Manufact. Company Profile

American Axle & Manufacturing Holdings, Inc., together with its subsidiaries, designs, engineers, validates, and manufactures driveline, metal forming, powertrain, and casting products in the United States, Mexico, South America, China, other Asian countries, Europe, and internationally. The company's Driveline segment offers axles, drive shafts, power transfer units, rear drive modules, transfer cases, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. Its Metal Forming segment provides axle and transmission shafts, ring and pinion gears, differential gears, transmission gears, and suspension components for original equipment manufacturers and automotive suppliers. The company's Powertrain segment offers transmission module and differential assemblies, transmission valve bodies, connecting rod forging and assemblies, torsional vibration dampers, and variable valve timing products for original equipment manufacturers and automotive suppliers. Its Casting segment provides thin wall castings and high strength ductile iron castings, as well as differential cases, steering knuckles, control arms, brackets, and turbo charger housings for the light vehicle, commercial, and industrial markets. American Axle & Manufacturing Holdings, Inc. was founded in 1994 and is headquartered in Detroit, Michigan.

Standard Motor Products Company Profile

Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. The company operates in two segments, Engine Management and Temperature Control. The Engine Management segment offers electronic ignition control modules, new and remanufactured fuel injectors, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, sensors, electronic throttle bodies, keyless entry transmitters, safety-related components, and other engine management components. It offers its products primarily under the Standard, Blue Streak, Intermotor, Standard Diesel, BWD Select, BWD, OEM, TechSmart, Tech Expert, GP Sorensen, LockSmart, and SMP Blue Streak brand names, as well as under private labels comprising NAPA Echlin NAPA Belden. The Temperature Control segment provides components for the temperature control systems, engine cooling systems, power window accessories, and windshield washer systems of motor vehicles under the Four Seasons, EVERCO, ACI, Hayden, Pro Source, and Factory Air brands. It provides new and remanufactured air conditioning compressors, air conditioning compressor repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves and cores, A/C service tools and chemicals, fan assemblies and clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to automotive aftermarket retailers, program distribution groups, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Mexico, Europe, Asia, and other Latin American countries. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.

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