Standard Motor Products (NYSE:SMP – Get Free Report) and SAF-Holland (OTCMKTS:SFHLF – Get Free Report) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Profitability
This table compares Standard Motor Products and SAF-Holland’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Standard Motor Products | 2.76% | 11.17% | 5.38% |
| SAF-Holland | N/A | N/A | N/A |
Earnings & Valuation
This table compares Standard Motor Products and SAF-Holland’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Standard Motor Products | $1.37 billion | 0.52 | $55.35 million | $1.71 | 19.36 |
| SAF-Holland | N/A | N/A | N/A | C$0.77 | 13.60 |
Analyst Recommendations
This is a summary of current ratings for Standard Motor Products and SAF-Holland, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Standard Motor Products | 0 | 0 | 1 | 0 | 3.00 |
| SAF-Holland | 0 | 0 | 0 | 0 | N/A |
Standard Motor Products currently has a consensus target price of $47.00, suggesting a potential upside of 41.95%. Given Standard Motor Products’ higher possible upside, equities analysts clearly believe Standard Motor Products is more favorable than SAF-Holland.
Insider & Institutional Ownership
77.1% of Standard Motor Products shares are owned by institutional investors. Comparatively, 51.7% of SAF-Holland shares are owned by institutional investors. 6.4% of Standard Motor Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Dividends
Standard Motor Products pays an annual dividend of $1.16 per share and has a dividend yield of 3.5%. SAF-Holland pays an annual dividend of C$0.27 per share and has a dividend yield of 2.6%. Standard Motor Products pays out 67.8% of its earnings in the form of a dividend. SAF-Holland pays out 35.0% 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. Standard Motor Products has increased its dividend for 2 consecutive years. Standard Motor Products is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Standard Motor Products beats SAF-Holland on 12 of the 13 factors compared between the two stocks.
About Standard Motor Products
Standard Motor Products, Inc. manufactures and distributes automotive parts that are used in the maintenance, repair, and service of vehicles in the automotive aftermarket industry in the United States and internationally. The company's Engine Management segment provides electronic ignition control modules, camshaft and crankshaft position sensors, ignition wires and coils, switches and relays, exhaust gas recirculation valves, pressure and temperature sensors, variable valve timing components, mass airflow and fuel pressure sensors, electronic throttle bodies, and diesel injectors and pumps; and anti-lock brake, vehicle speed, tire pressure monitoring, and park assist sensors. This segment offers its products under the Standard, Blue Streak, Intermotor, OEM, BWD select, techexpert, Locksmart, and pollak brands. Its 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, ACI, Hayden, Factory Air, and Everco HD brands; also distribute our products to customers for resale under private labels with NAPA Echlin and Belden brands. Its products include air conditioning compressors and repair kits, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, actuators, hose assemblies, thermal expansion devices, heater valves, heater cores, A/C service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company serves primarily automotive aftermarket retailers, warehouse distributors, original equipment manufacturers, and original equipment service part manufactures. The company was founded in 1919 and is headquartered in Long Island City, New York.
About SAF-Holland
SAF-Holland SE manufactures and supplies chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses. The company offers axle and air suspension systems, fifth wheels, hweel systems, coupling systems, kingpins, and landing gears, as well as ball races, braking and EBS systems, lighting systems, and disc brakes. It markets its products under the SAF, Holland, Neway, KLL, V.Orlandi, TrailerMaster, and York brands. The company serves original equipment manufacturers. It primarily operates in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. SAF-Holland SE was founded in 1881 and is headquartered in Bessenbach, Germany.
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