Comparing Holley (NYSE:HLLY) & Standard Motor Products (NYSE:SMP)

Standard Motor Products (NYSE:SMP) and Holley (NYSE:HLLY) are both small-cap consumer discretionary companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Risk and Volatility

Standard Motor Products has a beta of 0.8, suggesting that its share price is 20% less volatile than the S&P 500. Comparatively, Holley has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.

Earnings & Valuation

This table compares Standard Motor Products and Holley”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Motor Products	$1.79 billion	0.56	$41.33 million	$3.05	14.61
Holley	$613.51 million	0.41	$19.17 million	$0.08	26.06

Standard Motor Products has higher revenue and earnings than Holley. Standard Motor Products is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

81.3% of Standard Motor Products shares are owned by institutional investors. Comparatively, 39.7% of Holley shares are owned by institutional investors. 5.5% of Standard Motor Products shares are owned by insiders. Comparatively, 4.9% of Holley shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and target prices for Standard Motor Products and Holley, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	1	2	0	2.67
Holley	1	3	3	0	2.29

Standard Motor Products currently has a consensus price target of $54.00, indicating a potential upside of 21.21%. Holley has a consensus price target of $4.20, indicating a potential upside of 101.44%. Given Holley’s higher possible upside, analysts clearly believe Holley is more favorable than Standard Motor Products.

Profitability

This table compares Standard Motor Products and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Standard Motor Products	3.77%	13.65%	4.85%
Holley	3.07%	9.31%	3.60%

Summary

Standard Motor Products beats Holley on 11 of the 14 factors compared between the two stocks.

About Standard Motor Products

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.