Standard Motor Products (NYSE:SMP – Get Free Report) and CarGurus (NASDAQ:CARG – Get Free Report) are both auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Standard Motor Products and CarGurus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Standard Motor Products | 2.02% | 12.12% | 4.85% |
| CarGurus | 4.28% | 32.54% | 20.08% |
Analyst Recommendations
This is a breakdown of current ratings and target prices for Standard Motor Products and CarGurus, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Standard Motor Products | 0 | 0 | 0 | 0 | 0.00 |
| CarGurus | 0 | 3 | 7 | 1 | 2.82 |
Volatility and Risk
Standard Motor Products has a beta of 0.65, indicating that its stock price is 35% less volatile than the S&P 500. Comparatively, CarGurus has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.
Insider & Institutional Ownership
81.3% of Standard Motor Products shares are held by institutional investors. Comparatively, 86.9% of CarGurus shares are held by institutional investors. 5.0% of Standard Motor Products shares are held by company insiders. Comparatively, 17.0% of CarGurus shares are held 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.
Earnings and Valuation
This table compares Standard Motor Products and CarGurus”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Standard Motor Products | $1.46 billion | 0.46 | $27.50 million | $1.40 | 21.66 |
| CarGurus | $894.38 million | 3.75 | $20.97 million | $0.35 | 91.71 |
Standard Motor Products has higher revenue and earnings than CarGurus. Standard Motor Products is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.
Summary
CarGurus beats Standard Motor Products on 12 of the 15 factors compared between the two stocks.
About Standard Motor Products
Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.
About CarGurus
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally. It operates through two segments, U.S. Marketplace and Digital Wholesale. The company provides an online automotive marketplace where customers can search for new and used car listings from its dealers and sell their car to dealers and other consumers; and paid listings subscriptions for enhanced access to its marketplace that connects dealers to a large audience of informed and engaged consumers. It also offers dealer and non-dealer advertising products for its websites and social media platforms. The company operates online marketplaces under the CarGurus brand in the United States, Canada, and the United Kingdom; Autolist and CarOffer brands in the United States; and PistonHeads brand in the United Kingdom. The company was formerly known as CarGurus LLC and changed its name to CarGurus, Inc. in June 2015. CarGurus, Inc. was founded in 2005 and is headquartered in Cambridge, Massachusetts.
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