Cooper-Standard Holdings (NYSE: CPS) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.
Earnings & Valuation
This table compares Cooper-Standard Holdings and Motorcar Parts of America’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cooper-Standard Holdings||$3.54 billion||0.49||$431.14 million||$7.93||12.41|
|Motorcar Parts of America||$430.90 million||1.07||$77.71 million||$1.93||12.82|
Cooper-Standard Holdings has higher revenue and earnings than Motorcar Parts of America. Cooper-Standard Holdings 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.
Insider & Institutional Ownership
95.3% of Cooper-Standard Holdings shares are owned by institutional investors. 3.9% of Cooper-Standard Holdings shares are owned by company insiders. Comparatively, 4.4% of Motorcar Parts of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for Cooper-Standard Holdings and Motorcar Parts of America, 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|
Cooper-Standard Holdings currently has a consensus price target of $108.40, suggesting a potential upside of 10.14%. Motorcar Parts of America has a consensus price target of $36.33, suggesting a potential upside of 46.86%. Given Motorcar Parts of America’s stronger consensus rating and higher possible upside, analysts plainly believe Motorcar Parts of America is more favorable than Cooper-Standard Holdings.
Volatility & Risk
Cooper-Standard Holdings has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
This table compares Cooper-Standard Holdings and Motorcar Parts of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||8.75%||16.77%||9.31%|
Motorcar Parts of America beats Cooper-Standard Holdings on 8 of the 13 factors compared between the two stocks.
About Cooper-Standard Holdings
Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.
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.
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