ARB (OTCMKTS:ARBFF) vs. Fox Factory (NASDAQ:FOXF) Head-To-Head Comparison

Fox Factory (NASDAQ:FOXF) and ARB (OTCMKTS:ARBFF) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Profitability

This table compares Fox Factory and ARB’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Fox Factory	11.02%	16.78%	11.49%
ARB	N/A	N/A	N/A

Insider and Institutional Ownership

22.0% of ARB shares are held by institutional investors. 0.2% of Fox Factory shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Fox Factory and ARB’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fox Factory	$1.60 billion	1.59	$205.28 million	$4.37	13.79
ARB	N/A	N/A	N/A	$0.59	31.56

Fox Factory has higher revenue and earnings than ARB. Fox Factory is trading at a lower price-to-earnings ratio than ARB, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations for Fox Factory and ARB, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Fox Factory	0	5	3	0	2.38
ARB	1	1	0	0	1.50

Fox Factory currently has a consensus price target of $111.43, indicating a potential upside of 84.88%. Given Fox Factory’s stronger consensus rating and higher possible upside, equities analysts plainly believe Fox Factory is more favorable than ARB.

Summary

Fox Factory beats ARB on 9 of the 11 factors compared between the two stocks.

About Fox Factory

Fox Factory Holding Corp. designs, engineers, manufactures, and markets ride dynamics products worldwide. The company offers mid-end and high-end front fork and rear suspension products for mountain bikes, road bikes, and e-bikes; and powered vehicle products for side-by-side vehicles, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, all-terrain vehicles, snowmobiles, and specialty vehicles and applications, such as military, motorcycles, and commercial trucks. It also provides mountain and road bike wheels, and other performance cycling components, including cranks, chain rings, pedals, bars, stems, and seat posts, as well as sells aftermarket products to dealers and distributors. The company offers powered vehicles under the FOX, BDS Suspension, Zone Offroad, JKS Manufacturing, RT Pro UTV, 4×4 Posi-Lok, Ridetech, Tuscany, Outside Van, and SCA brands; and mountain bikes, e-bikes, and road bikes under the FOX, Race Face, Easton Cycling, and Marzocchi brands. Fox Factory Holding Corp. was incorporated in 2007 and is headquartered in Duluth, Georgia.

About ARB

ARB Corporation Limited engages in the design, manufacture, distribution, and sale of motor vehicle accessories and light metal engineering works. The company provides bull bars, side rails and steps, canopies, UTE lids and tub accessories, roof racks, cross bars and carriers, suspension systems, driving lights, air compressors and tire accessories, air lockers, winches, recovery equipment and points, under vehicle protection products, fuel tanks and storage, drawers and cargo solutions, slide kitchen, portable fridge freezers, tents, swags and awnings, camping and touring accessories, safari snorkels, dual battery and solar systems, interior protection, and general accessories, as well as rear protection, towing, and wheel carriers. It also offers LINX, a controller that declutters the dashboard and centralizes the command of vehicle accessories by replacing classic switches, gauges, and monitors with one sleek and smart driver interface; and UHF radios, GPS, and reversing cameras. The company serves stockists, vehicle dealers, and various fleet operators, as well as owns and license ARB branded store network. The company has operations in Australia, New Zealand, the United States, Thailand, the Middle East, Europe, and the United Kingdom. ARB Corporation Limited was founded in 1975 and is based in Kilsyth, Australia.