Gentex (NASDAQ:GNTX) and Standard Motor Products (NYSE:SMP) are both auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.
Gentex pays an annual dividend of $0.46 per share and has a dividend yield of 2.1%. Standard Motor Products pays an annual dividend of $0.92 per share and has a dividend yield of 2.0%. Gentex pays out 28.4% of its earnings in the form of a dividend. Standard Motor Products pays out 36.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Gentex has raised its dividend for 8 consecutive years and Standard Motor Products has raised its dividend for 8 consecutive years. Gentex is clearly the better dividend stock, given its higher yield and lower payout ratio.
This table compares Gentex and Standard Motor Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Gentex||$1.83 billion||3.08||$437.88 million||$1.62||13.66|
|Standard Motor Products||$1.09 billion||0.96||$43.00 million||$2.55||18.37|
Gentex has higher revenue and earnings than Standard Motor Products. Gentex 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
Gentex has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Standard Motor Products has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
This table compares Gentex and Standard Motor Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Standard Motor Products||4.24%||13.02%||7.09%|
This is a breakdown of current ratings and price targets for Gentex and Standard Motor Products, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Standard Motor Products||0||1||0||0||2.00|
Gentex presently has a consensus price target of $21.73, suggesting a potential downside of 1.81%. Given Gentex’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Gentex is more favorable than Standard Motor Products.
Institutional & Insider Ownership
86.8% of Gentex shares are owned by institutional investors. Comparatively, 81.1% of Standard Motor Products shares are owned by institutional investors. 0.4% of Gentex shares are owned by company insiders. Comparatively, 6.6% of Standard Motor Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Gentex beats Standard Motor Products on 13 of the 16 factors compared between the two stocks.
Gentex Company Profile
Gentex Corporation provides digital vision, connected car, dimmable glass, and fire protection products worldwide. It designs, develops, manufactures, and markets automotive products, including interior and exterior electrochromic automatic-dimming rearview mirrors, automotive electronics, and non-automatic-dimming rearview mirrors for automotive passenger cars, light trucks, pick-up trucks, sport utility vehicles, and vans for original equipment manufacturers, tier one automotive mirror manufacturers, and various aftermarket and accessory customers. The company also manufactures and sells variable dimmable windows to aircraft manufacturers and airline operators. In addition, it provides photoelectric smoke detectors and alarms, electrochemical carbon monoxide detectors and alarms, audible and visual signaling alarms, and bells and speakers for use in fire detection systems in office buildings, hotels, and other commercial and residential establishments. Gentex Corporation sells its fire protection products directly, as well as through sales managers and manufacturer representative organizations to fire protection and security product distributors, electrical wholesale houses, and original equipment manufacturers of fire protection systems. The company was founded in 1974 and is headquartered in Zeeland, 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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