Standard Motor Products (NYSE:SMP) versus U Power (NASDAQ:UCAR) Critical Survey

Standard Motor Products (NYSE:SMP) and U Power (NASDAQ:UCAR) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Volatility & Risk

Standard Motor Products has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, U Power has a beta of 1.85, indicating that its share price is 85% more volatile than the S&P 500.

Earnings & Valuation

This table compares Standard Motor Products and U Power”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Standard Motor Products	$1.41 billion	0.50	$34.15 million	$1.62	20.17
U Power	$2.78 million	6.50	-$2.72 million	N/A	N/A

Standard Motor Products has higher revenue and earnings than U Power.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Standard Motor Products	2.56%	10.42%	5.07%
U Power	N/A	N/A	N/A

Insider & Institutional Ownership

81.3% of Standard Motor Products shares are owned by institutional investors. Comparatively, 13.2% of U Power shares are owned by institutional investors. 5.0% of Standard Motor Products shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Standard Motor Products and U Power, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Standard Motor Products	0	0	1	0	3.00
U Power	0	0	0	0	0.00

Standard Motor Products currently has a consensus target price of $42.00, indicating a potential upside of 28.52%. Given Standard Motor Products’ stronger consensus rating and higher possible upside, research analysts plainly believe Standard Motor Products is more favorable than U Power.

Summary

Standard Motor Products beats U Power on 10 of the 12 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 U Power

U Power Limited, together with its subsidiaries, engages in the development, manufacture, and sale of new energy vehicles and battery swapping stations in the People's Republic of China. It also offers battery swapping and sourcing, as well as technical and consultation services. The company was founded in 2013 and is headquartered in Wuhu, the People's Republic of China.