Motorcar Parts of America (NASDAQ: MPAA) and Gentherm (NASDAQ:THRM) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.
Earnings & Valuation
This table compares Motorcar Parts of America and Gentherm’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Motorcar Parts of America||$430.90 million||1.25||$77.71 million||$1.93||14.98|
|Gentherm||$961.81 million||1.28||$157.43 million||$1.81||18.51|
Gentherm has higher revenue and earnings than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Gentherm, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Motorcar Parts of America and Gentherm, as reported by MarketBeat.com.
|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 $36.67, indicating a potential upside of 26.83%. Gentherm has a consensus price target of $40.43, indicating a potential upside of 20.68%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, research analysts plainly believe Motorcar Parts of America is more favorable than Gentherm.
This table compares Motorcar Parts of America and Gentherm’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%|
Risk and Volatility
Motorcar Parts of America has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500.
Insider & Institutional Ownership
96.6% of Gentherm shares are owned by institutional investors. 4.4% of Motorcar Parts of America shares are owned by insiders. Comparatively, 2.3% of Gentherm 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.
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.
Gentherm Incorporated (Gentherm) is a global technology company engaged in the design, development, and manufacturing of thermal management technologies. The Company has two segments: Automotive and Industrial. Its products provide solutions for automotive passenger comfort and convenience, battery thermal management, remote power generation, patient temperature management, environmental product testing and other consumer and industrial temperature control needs. Its automotive products can be found on the vehicles of all major automotive manufacturers operating in North America, Europe and Asia. The Automotive segment comprises the results from its global automotive businesses and individual convenience products. The Industrial segment represents the combined results from its remote power generation systems business, patient temperature management systems business, environmental testing equipment and services business, and advanced research and product development division.
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