Comparing Stoneridge (NYSE:SRI) and Envirotech Vehicles (NASDAQ:EVTV)

Envirotech Vehicles (NASDAQ:EVTV) and Stoneridge (NYSE:SRI) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Insider and Institutional Ownership

5.7% of Envirotech Vehicles shares are owned by institutional investors. Comparatively, 98.1% of Stoneridge shares are owned by institutional investors. 13.7% of Envirotech Vehicles shares are owned by insiders. Comparatively, 2.3% of Stoneridge shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Envirotech Vehicles and Stoneridge, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Envirotech Vehicles	0	0	0	0	0.00
Stoneridge	0	0	2	0	3.00

Stoneridge has a consensus price target of $16.00, indicating a potential upside of 237.20%. Given Stoneridge’s stronger consensus rating and higher probable upside, analysts plainly believe Stoneridge is more favorable than Envirotech Vehicles.

Profitability

This table compares Envirotech Vehicles and Stoneridge’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Envirotech Vehicles	-789.13%	-42.63%	-35.66%
Stoneridge	-0.81%	-0.42%	-0.17%

Earnings & Valuation

This table compares Envirotech Vehicles and Stoneridge”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Envirotech Vehicles	$1.73 million	2.42	-$12.68 million	($0.63)	-0.40
Stoneridge	$908.30 million	0.14	-$5.18 million	($0.60)	-7.91

Stoneridge has higher revenue and earnings than Envirotech Vehicles. Stoneridge is trading at a lower price-to-earnings ratio than Envirotech Vehicles, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Envirotech Vehicles has a beta of 2.7, suggesting that its share price is 170% more volatile than the S&P 500. Comparatively, Stoneridge has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.

Summary

Stoneridge beats Envirotech Vehicles on 10 of the 14 factors compared between the two stocks.

About Envirotech Vehicles

Envirotech Vehicles, Inc. manufactures and provides zero-emission electric vehicles in the United States. It offers Class 2 through logistics vans; class 4 through urban trucks, school buses, electric forklifts, street sweepers, neighborhood electric vehicles, and right-hand drive vans and urban trucks. The company also offers vehicle maintenance and safety inspection services. It serves commercial and last-mile fleets, school districts, public and private transportation service companies, and colleges and universities. The company was formerly known as ADOMANI, Inc. and changed its name to Envirotech Vehicles, Inc. in May 2021. Envirotech Vehicles, Inc. is headquartered in Osceola, Arkansas.

About Stoneridge

Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic systems, components, and modules for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. The company operates through three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers actuators, sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment also offers electronic control units that regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories, including parking sensors and rearview cameras; in-vehicle audio and infotainment devices; and driver information systems and telematics solutions. The company provides its products and systems to various original equipment manufacturers and tier 1 customers, as well as aftermarket distributors. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.