Contrasting AUO (OTCMKTS:AUOTY) & Stoneridge (NYSE:SRI)

Stoneridge (NYSE:SRI) and AUO (OTCMKTS:AUOTY) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, dividends, analyst recommendations and risk.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stoneridge	$877.92 million	0.20	-$16.52 million	($1.08)	-5.70
AUO	$8.03 billion	0.37	-$584.71 million	$0.26	14.77

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Stoneridge	-3.39%	-9.24%	-3.69%
AUO	N/A	N/A	N/A

Institutional & Insider Ownership

98.1% of Stoneridge shares are held by institutional investors. 2.9% of Stoneridge shares are held by company insiders. Comparatively, 16.0% of AUO shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Stoneridge has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500. Comparatively, AUO has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Stoneridge and AUO, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stoneridge	1	0	1	0	2.00
AUO	0	0	0	0	0.00

Stoneridge presently has a consensus target price of $16.00, suggesting a potential upside of 159.95%. Given Stoneridge’s stronger consensus rating and higher probable upside, analysts clearly believe Stoneridge is more favorable than AUO.

Summary

AUO beats Stoneridge on 8 of the 14 factors compared between the two stocks.

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.

About AUO

AUO Corporation researches, develops, produces, and sells thin film transistor liquid crystal displays (TFT-LCDs) and other flat panel displays for various applications. It operates through two segments, Display and Energy. The company designs, manufactures, and sells ingots, solar wafers, and solar modules, as well as provides technical engineering and maintenance services for solar system projects. It also sells and leases content management system and related hardware; designs digital signage content and field curation solutions; plans, designs, and develops construction project for environmental protection and related project management; and designs, manufactures, and sells TFT-LCD modules, TV sets and related parts, backlight modules, automotive parts, and precision plastic parts. In addition, the company engages in the development, manufacturing, and sale of medical equipment; services related to site rental and educational activities; research and development, and IP related business; solar power generation; and sale and sales support of TFTLCD panels. Further, it designs, develops, and sells software and hardware for health care industry; provides software and hardware integration system and equipment relating to intelligent manufacturing, as well as software development and related consulting services; and investment services. It operates in the People's Republic of China, Taiwan, the United States, Japan, Singapore, and internationally. The company was formerly known as AU Optronics Corp. and changed its name to AUO Corporation in June 2022. AUO Corporation was founded in 1996 and is headquartered in Hsinchu City, Taiwan.