Motorcar Parts of America (NASDAQ:MPAA – Get Free Report) and CarGurus (NASDAQ:CARG – Get Free Report) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.
Risk & Volatility
Motorcar Parts of America has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, CarGurus has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500.
Valuation & Earnings
This table compares Motorcar Parts of America and CarGurus”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorcar Parts of America | $757.35 million | 0.30 | -$19.47 million | ($1.00) | -11.67 |
| CarGurus | $903.75 million | 3.96 | $20.97 million | $0.35 | 98.00 |
CarGurus has higher revenue and earnings than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than CarGurus, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Motorcar Parts of America and CarGurus’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Motorcar Parts of America | -2.57% | 3.60% | 0.98% |
| CarGurus | 4.28% | 32.54% | 20.08% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Motorcar Parts of America and CarGurus, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorcar Parts of America | 0 | 0 | 1 | 0 | 3.00 |
| CarGurus | 0 | 6 | 6 | 0 | 2.50 |
Motorcar Parts of America presently has a consensus price target of $14.00, suggesting a potential upside of 19.97%. CarGurus has a consensus price target of $37.86, suggesting a potential upside of 10.39%. Given Motorcar Parts of America’s stronger consensus rating and higher possible upside, research analysts plainly believe Motorcar Parts of America is more favorable than CarGurus.
Insider & Institutional Ownership
83.5% of Motorcar Parts of America shares are held by institutional investors. Comparatively, 86.9% of CarGurus shares are held by institutional investors. 6.7% of Motorcar Parts of America 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, large money managers and endowments believe a company is poised for long-term growth.
Summary
CarGurus beats Motorcar Parts of America on 12 of the 14 factors compared between the two stocks.
About Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.
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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