Standard Motor Products (NYSE: SMP – Get Rating) and Worksport (OTCMKTS: WKSP – Get Rating) are both small cap auto/tire/truck companies, but which is the better investment? We’ll compare the two companies based on their risk strength, profitability, institutional ownership, earnings, valuation, dividends, and analyst recommendations.
This is a summary of recent valuations and price targets for standard automotive and work sports products, as provided by MarketBeat.com.
|Sales Ratings||Hold odds||Buy reviews||Strong buy odds||Rating|
|Standard engine products||0||0||1||0||3.00|
Standard Motor Products currently has a consensus price target of $62.00, suggesting a potential upside of 49.94%. Worksport has a consensus price target of $8.00, suggesting a potential upside of 213.73%. Given Worksport’s likely higher upside, analysts clearly believe Worksport is more favorable than Standard Motor Products.
Valuation and benefits
This chart compares the gross revenue, earnings per share (EPS), and valuation of Standard Motor Products and Worksport.
|Gross revenue||Price/sales ratio||Net revenue||Earnings per share||Price/earnings ratio|
|Standard engine products||$1.30 billion||0.69||$90.89 million||$3.63||11:39|
|working sports||$300,000.00||144.51||-7.90 million dollars||($0.79)||-3.23|
Standard Motor Products has higher revenues and profits than Worksport. Worksport trades at a lower price-to-earnings ratio than Standard Motor Products, indicating that it is currently the more affordable of the two stocks.
This table compares the net margins, return on equity and return on assets of Standard Motor Products and Worksport.
|Net margins||Return on equity||return on assets|
|Standard engine products||5.97%||14.93%||7.26%|
Insider and Institutional Ownership
76.5% of Standard Motor Products shares are held by institutional investors. Comparatively, 1.8% of Worksport shares are held by institutional investors. 6.6% of Standard Motor Products shares are held by insiders. By comparison, 15.7% of Worksport shares are held by insiders. Strong institutional ownership indicates that endowments, hedge funds, and large fund managers believe a stock will outperform the market over the long term.
Risk and Volatility
Standard Motor Products has a beta of 0.35, suggesting its stock price is 65% less volatile than the S&P 500. By comparison, Worksport has a beta of 0.74, suggesting its stock price is 26% less volatile than the S&P 500.
Standard Motor Products beats Worksport on 8 of 12 factors compared between the two stocks.
About standard engine products
(Get an assessment)
Standard Motor Products, Inc. manufactures and distributes replacement parts that are used in the maintenance, repair and servicing of vehicles in the automotive aftermarket industry with a complementary focus on equipment parts OEMs for manufacturers in the agriculture, heavy equipment and construction equipment industries. . The Company’s Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, valves exhaust gas recirculation, pressure and temperature sensors, variable valve timing components, mass air flow and fuel pressure sensors, electronic throttle body, and diesel injectors and pumps; and anti-lock braking, vehicle speed, tire pressure monitoring and parking assist sensors. This segment offers its products under the brands Standard, Blue Streak, BWD, Intermotor, OEM, SMP Blue Streak Canada, GP Sorensen, Locksmart, Standard Motorcycle and Blue Streak Race Wires. Its Climate Control segment provides components for climate control systems, engine cooling systems, power window accessories and automotive windshield washer systems under the brands Four Seasons, ACI, Hayden, FactoryAir and Maxair. Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter driers, evaporators, accumulators, actuators, hose assemblies, thermal expansion, heater valves, heater cores, air conditioning service tools and chemicals, fan assemblies, fan clutches, oil coolers, window regulator motors, window regulators and assemblies, and washer pumps. The company primarily serves automotive aftermarket retailers, warehouse distributors, original equipment manufacturers and original equipment replacement parts operations in the United States, Canada, Europe, Asia, Mexico and other Latin American countries. The company was founded in 1919 and is based in Long Island City, New York.
(Get an assessment)
Worksport Ltd., through its subsidiary, designs, manufactures and distributes truck bed covers in Canada and the United States. The company offers both soft-cover (SC) and hard-cover (TC) tonneau covers, including SC3, a tri-fold cover that seals around the truck bed with a rubber seal designed to protect cargo moisture and debris; SC3pro which allows the operator to open the cover by pulling a release cable; and TC3, a thick aluminum tri-cover panel with a honeycomb core covered in a durable scratch-resistant black powder coat. It is also developing TerraVis, a solar-powered tonneau cover that provides rechargeable portable power to pickup truck owners. The Company distributes its products through wholesalers and online retail channels. It serves private brands and original equipment manufacturers. Worksport Ltd. has a collaboration agreement with Greatcell Energy Pty Ltd. The company was previously known as Franchise Holdings International, Inc. and changed its name to Worksport Ltd. in May 2020. Worksport Ltd. is based in Vaughan, Canada.
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