Critical Survey: Dorman Products (DORM) versus Its Rivals

Dorman Products (NASDAQ: DORM) is one of 45 publicly-traded companies in the “Motor vehicle parts & accessories” industry, but how does it compare to its competitors? We will compare Dorman Products to related businesses based on the strength of its risk, dividends, valuation, profitability, earnings, analyst recommendations and institutional ownership.

Valuation and Earnings

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This table compares Dorman Products and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Dorman Products $903.22 million $106.59 million 20.76
Dorman Products Competitors $7.89 billion $494.31 million 13.59

Dorman Products’ competitors have higher revenue and earnings than Dorman Products. Dorman Products is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk & Volatility

Dorman Products has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Dorman Products’ competitors have a beta of 1.35, suggesting that their average share price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Dorman Products and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorman Products 0 4 0 1 2.40
Dorman Products Competitors 253 1258 1829 82 2.51

Dorman Products currently has a consensus price target of $68.33, suggesting a potential downside of 2.33%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 7.75%. Given Dorman Products’ competitors stronger consensus rating and higher possible upside, analysts clearly believe Dorman Products has less favorable growth aspects than its competitors.

Institutional & Insider Ownership

75.2% of Dorman Products shares are owned by institutional investors. Comparatively, 75.7% of shares of all “Motor vehicle parts & accessories” companies are owned by institutional investors. 11.9% of Dorman Products shares are owned by company insiders. Comparatively, 11.9% of shares of all “Motor vehicle parts & accessories” companies are owned by company 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 Dorman Products and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorman Products 11.80% 18.14% 15.22%
Dorman Products Competitors 2.20% 22.50% 5.66%

Summary

Dorman Products competitors beat Dorman Products on 9 of the 13 factors compared.

Dorman Products Company Profile

Dorman Products, Inc. supplies automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, the Middle East, and Australia. It offers original equipment dealer products, such as intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, and complex electronics modules; fluid reservoirs, variable valve timing components, complex electronics, and integrated door lock actuators; and fasteners, including oil drain plugs, wheel bolts, and wheel lug nuts. The company also provides automotive replacement parts comprising door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles comprising lighting, cooling, engine management, and cab products. In addition, it offers solutions for rugged duty and fleet applications; replacement chassis part solutions; brake hardware products; electrical components; and application specific repair hardware products. The company provides its products under the OE Solutions, HELP!, HD Solutions, Premium Chassis, Premium XL, Premium RD, MAS, FirstStop, ConductTite, and AutoGrade brands through automotive aftermarket retailers, local independent parts wholesalers, national general merchandise chain retailers, mass merchants, salvage yards, and the parts distribution systems of parts manufacturers. Dorman Products, Inc. was founded in 1978 and is headquartered in Colmar, Pennsylvania.

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