LCI Industries (LCII) versus Standard Motor Products (SMP) Head-To-Head Comparison

Standard Motor Products (NYSE:SMP) and LCI Industries (NYSE:LCII) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Standard Motor Products and LCI Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Standard Motor Products 0 1 0 0 2.00
LCI Industries 0 1 5 0 2.83

LCI Industries has a consensus price target of $101.25, suggesting a potential upside of 16.70%. Given LCI Industries’ stronger consensus rating and higher possible upside, analysts clearly believe LCI Industries is more favorable than Standard Motor Products.

Earnings and Valuation

This table compares Standard Motor Products and LCI Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Standard Motor Products $1.09 billion 0.94 $43.00 million $2.55 18.07
LCI Industries $2.48 billion 0.88 $148.55 million $5.86 14.81

LCI Industries has higher revenue and earnings than Standard Motor Products. LCI Industries 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.

Profitability

This table compares Standard Motor Products and LCI Industries’ 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%
LCI Industries 5.61% 18.94% 10.84%

Institutional and Insider Ownership

81.1% of Standard Motor Products shares are owned by institutional investors. Comparatively, 97.3% of LCI Industries shares are owned by institutional investors. 6.6% of Standard Motor Products shares are owned by insiders. Comparatively, 3.3% of LCI Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Standard Motor Products has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.42, meaning that its stock price is 42% 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 2.0%. LCI Industries pays an annual dividend of $2.40 per share and has a dividend yield of 2.8%. Standard Motor Products pays out 36.1% of its earnings in the form of a dividend. LCI Industries pays out 41.0% 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.

Summary

LCI Industries beats Standard Motor Products on 12 of the 16 factors compared between the two stocks.

About Standard Motor Products

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.

About LCI Industries

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures or distributes various components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; televisions and sound systems; navigation systems; backup cameras; and other accessories. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. It also sells replacement glass and awnings to fulfill insurance claims. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1962 and is based in Elkhart, Indiana.

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