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Critical Survey: Romeo Power (NYSE:RMO) and Superior Industries International (NYSE:SUP)

Defense World ·  Sep 16, 2022 04:22

Romeo Power (NYSE:RMO – Get Rating) and Superior Industries International (NYSE:SUP – Get Rating) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Earnings & Valuation

This table compares Romeo Power and Superior Industries International's top-line revenue, earnings per share and valuation.

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Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Romeo Power $16.80 million 6.36 $10.03 million ($1.26) -0.46
Superior Industries International $1.38 billion 0.08 $3.71 million ($0.98) -4.01

Romeo Power has higher earnings, but lower revenue than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Romeo Power, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Romeo Power and Superior Industries International, as provided by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Romeo Power 0 2 0 0 2.00
Superior Industries International 0 0 0 0 N/A

Romeo Power currently has a consensus price target of $6.50, suggesting a potential upside of 1,030.43%. Given Romeo Power's higher probable upside, research analysts clearly believe Romeo Power is more favorable than Superior Industries International.

Volatility and Risk

Romeo Power has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 3.88, indicating that its stock price is 288% more volatile than the S&P 500.

Institutional and Insider Ownership

26.1% of Romeo Power shares are owned by institutional investors. Comparatively, 46.2% of Superior Industries International shares are owned by institutional investors. 3.4% of Romeo Power shares are owned by insiders. Comparatively, 6.5% of Superior Industries International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Romeo Power and Superior Industries International's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Romeo Power -550.95% -58.91% -48.49%
Superior Industries International 0.65% -22.90% 1.24%

Summary

Superior Industries International beats Romeo Power on 8 of the 12 factors compared between the two stocks.

About Romeo Power

(Get Rating)

Romeo Power, Inc., an energy storage technology company, designs and manufactures lithium-ion battery modules and packs for vehicle electrification in North America. The company designs and manufactures battery modules, battery packs, and battery management system technologies; and provides non-recurring engineering services, such as design, prototype, and testing services. It serves commercial electric vehicle manufacturers, electric powertrain converters, electric watercraft manufacturers, fleet operators, and automobile, and recreational vehicle manufacturers. The company was founded in 2014 and is headquartered in Vernon, California.

About Superior Industries International

(Get Rating)

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers and aftermarket distributors in North America and Europe. The company supplies aluminum wheels to the automobile and light truck manufacturers. It offers its products under the ATS, RIAL, ALUTEC, and ANZIO brand names. The company was founded in 1957 and is headquartered in Southfield, Michigan.

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