Lydall (NYSE: LDL) and SORL Auto Parts (NASDAQ:SORL) are both small-cap multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.
This table compares Lydall and SORL Auto Parts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|SORL Auto Parts||6.26%||13.04%||5.75%|
Insider and Institutional Ownership
92.3% of Lydall shares are owned by institutional investors. Comparatively, 8.8% of SORL Auto Parts shares are owned by institutional investors. 4.4% of Lydall shares are owned by company insiders. Comparatively, 58.9% of SORL Auto Parts shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Lydall and SORL Auto Parts’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Lydall||$698.44 million||1.02||$49.31 million||$2.80||14.61|
|SORL Auto Parts||$390.52 million||0.26||$24.32 million||$1.26||4.22|
Lydall has higher revenue and earnings than SORL Auto Parts. SORL Auto Parts is trading at a lower price-to-earnings ratio than Lydall, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent recommendations and price targets for Lydall and SORL Auto Parts, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|SORL Auto Parts||0||0||1||0||3.00|
Lydall presently has a consensus target price of $59.00, indicating a potential upside of 44.25%. SORL Auto Parts has a consensus target price of $10.00, indicating a potential upside of 87.97%. Given SORL Auto Parts’ higher possible upside, analysts plainly believe SORL Auto Parts is more favorable than Lydall.
Risk & Volatility
Lydall has a beta of 1.48, suggesting that its stock price is 48% more volatile than the S&P 500. Comparatively, SORL Auto Parts has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500.
Lydall beats SORL Auto Parts on 10 of the 13 factors compared between the two stocks.
Lydall Company Profile
Lydall, Inc. designs, manufactures, and markets specialty engineered filtration media, industrial thermal insulating solutions, and automotive thermal and acoustical barriers for filtration/separation and thermal/acoustical applications worldwide. It operates through Performance Materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. The Performance Materials segment offers filtration media solutions for air, fluid power, and industrial applications, such as clean-space, commercial, HVAC, power generation, and industrial processes. This segment also provides non-woven veils, papers, mats, and specialty composites for the building products, appliances, and energy and industrial markets; and life sciences filtration products for biopharmaceutical pre-filtration and clarification, diagnostic and analytical testing, respiratory protection, water filtration, and high purity process filtration. The Technical Nonwovens segment offers nonwoven rolled-good felt media and filter bags used primarily in industrial air and liquid filtration applications. The Thermal Acoustical Solutions segment provides engineered products for the transportation sector to thermally shield sensitive components from high heat, improve exhaust gas treatment, and lower harmful emissions, as well as assist in the reduction of powertrain and road noise. Its products are used in the tunnel, fuel tank, rear muffler, and spare tire applications, as well as outer dash, powertrain, catalytic converter, turbo charger, and manifolds of cars, trucks, SUVs, heavy duty trucks, and recreational vehicles. This segment also offers thermal and acoustical insulating solutions comprising organic and inorganic fiber composites for the automotive and truck markets. The company markets its products to original equipment manufacturers and tier-one suppliers through internal sales force and distribution network. Lydall, Inc. was founded in 1879 and is headquartered in Manchester, Connecticut.
SORL Auto Parts Company Profile
SORL Auto Parts, Inc., together with its subsidiaries, develops, manufactures, and distributes automotive brake systems and other safety related auto parts to automotive original equipment manufacturers and the related aftermarket in the People's Republic of China. It operates through two segments, Commercial Vehicles Brake Systems and Passenger Vehicles Brake Systems. The company offers a range of products covering 65 categories and approximately 2000 specifications in automotive brake systems that are principally used in various types of commercial vehicles, such as trucks and buses. SORL Auto Parts, Inc. markets its products under the SORL brand through authorized distributors. The company exports its products to approximately 104 countries and regions. SORL Auto Parts, Inc. was founded in 2003 and is headquartered in Rui'an, the People's Republic of China.
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