Fenix Parts (OTCMKTS: FENX) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.
Volatility & Risk
Fenix Parts has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
This table compares Fenix Parts 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||8.03%||15.15%||8.68%|
Valuation and Earnings
This table compares Fenix Parts and Motorcar Parts of America’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Fenix Parts||$132.10 million||0.05||-$42.86 million||($2.03)||-0.16|
|Motorcar Parts of America||$421.25 million||1.00||$37.57 million||$1.79||12.30|
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.
This is a summary of current ratings and price targets for Fenix Parts 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|
Motorcar Parts of America has a consensus price target of $36.67, indicating a potential upside of 66.59%. Given Motorcar Parts of America’s higher probable upside, analysts clearly believe Motorcar Parts of America is more favorable than Fenix Parts.
Insider and Institutional Ownership
4.1% of Fenix Parts shares are owned by institutional investors. 16.6% of Fenix Parts shares are owned by insiders. Comparatively, 4.2% of Motorcar Parts of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Motorcar Parts of America beats Fenix Parts on 10 of the 13 factors compared between the two stocks.
Fenix Parts Company Profile
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.
Motorcar Parts of America Company Profile
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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