Supreme Industries (NYSE: STS) and Standard Motor Products (NYSE:SMP) are both small-cap cyclical consumer goods & services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, profitability, risk and dividends.
Insider & Institutional Ownership
78.4% of Standard Motor Products shares are held by institutional investors. 6.6% of Standard Motor Products shares are held by company 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.
This table compares Supreme Industries and Standard Motor Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Standard Motor Products||5.55%||14.83%||8.27%|
Standard Motor Products pays an annual dividend of $0.76 per share and has a dividend yield of 1.7%. Supreme Industries does not pay a dividend. Standard Motor Products pays out 28.4% of its earnings in the form of a dividend. Supreme Industries has raised its dividend for 6 consecutive years and Standard Motor Products has raised its dividend for 2 consecutive years.
This is a breakdown of current ratings and price targets for Supreme Industries and Standard Motor Products, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Standard Motor Products||0||0||1||0||3.00|
Standard Motor Products has a consensus price target of $54.00, suggesting a potential upside of 19.76%. Given Standard Motor Products’ higher possible upside, analysts plainly believe Standard Motor Products is more favorable than Supreme Industries.
Earnings and Valuation
This table compares Supreme Industries and Standard Motor Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Supreme Industries||$300.79 million||1.20||$25.64 million||N/A||N/A|
|Standard Motor Products||$1.13 billion||0.91||$149.98 million||$2.68||16.82|
Standard Motor Products has higher revenue and earnings than Supreme Industries.
About Supreme Industries
Supreme Industries, Inc. (Supreme) is a manufacturer of specialized vehicles, including truck bodies and specialty vehicles. The Company operates through two segments: specialized commercial vehicles and fiberglass products. The Company manufactures specialized commercial vehicles that are attached to a truck chassis. The Company’s truck bodies are offered in aluminum, FiberPanel PW, FiberPanel HC, or SignaturePlate. The Company’s products include Signature van bodies, Iner-City cutaway van bodies, Spartan service bodies, Spartan cargo vans, Kold King insulated van bodies, stake bodies, armored sport utility vehicles (SUVs), armored trucks and specialty vehicles, and trolleys. Its products are attached to light-duty truck chassis and medium-duty truck chassis. Supreme integrates a range of options into its truck bodies, including liftgates, cargo-handling equipment, customized doors, special bumpers, ladder racks and refrigeration equipment.
About Standard Motor Products
Standard Motor Products, Inc. is an independent manufacturer and distributor of replacement parts for motor vehicles in the automotive aftermarket industry with a complementary focus on heavy duty, industrial equipment and the original equipment service market. The Company’s segments include Engine Management Segment and Temperature Control Segment. The Engine Management Segment manufactures and remanufactures ignition and emission parts, ignition wires, battery cables, fuel system parts and sensors for vehicle systems. The Temperature Control Segment manufactures and remanufactures air conditioning compressors, air conditioning and heating parts, engine cooling system parts, power window accessories and windshield washer system parts. The Company sells its products primarily to warehouse distributors, large retail chains, original equipment manufacturers and original equipment service part operations in the United States, Canada, Latin America and Europe.
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