Motorcar Parts of America (NASDAQ: MPAA) and Fenix Parts (OTCMKTS:FENX) 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 earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Earnings and Valuation
This table compares Motorcar Parts of America and Fenix Parts’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Motorcar Parts of America||$421.25 million||1.04||$37.57 million||$0.86||26.70|
|Fenix Parts||$132.10 million||0.07||-$42.86 million||($2.03)||-0.24|
Motorcar Parts of America has higher revenue and earnings than Fenix Parts. Fenix Parts is trading at a lower price-to-earnings ratio than Motorcar Parts of America, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Motorcar Parts of America has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500. Comparatively, Fenix Parts has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Motorcar Parts of America and Fenix Parts, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
Motorcar Parts of America presently has a consensus price target of $34.67, indicating a potential upside of 50.99%. Given Motorcar Parts of America’s higher probable upside, equities research analysts plainly believe Motorcar Parts of America is more favorable than Fenix Parts.
Insider & Institutional Ownership
4.1% of Fenix Parts shares are owned by institutional investors. 4.2% of Motorcar Parts of America shares are owned by company insiders. Comparatively, 16.6% of Fenix Parts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Motorcar Parts of America and Fenix Parts’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||4.02%||13.00%||7.56%|
Motorcar Parts of America beats Fenix Parts on 9 of the 12 factors compared between the two stocks.
About Motorcar Parts of America
Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.
About Fenix Parts
Fenix Parts, Inc. is engaged in auto recycling business. The Company recovers and resells original equipment manufacturer (OEM) parts, components and systems, such as engines, transmissions, radiators, trunks, lamps and seats reclaimed from damaged, totaled or low value vehicles. The Company operates through Automobile Recycling segment. The Company purchases its vehicles primarily at auto salvage auctions. Upon receipt of vehicles, the Company inventories and then dismantles the vehicles and sells the recycled components. Its customers include collision repair shops (body shops), mechanical repair shops, auto dealerships and individual retail customers. The Company also generates a portion of its revenue from the sale as scrap of the unusable parts and materials, from the sale of used cars and motorcycles, the sale of aftermarket parts, and from the sale of extended warranty contracts.
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