Critical Contrast: Holley (NYSE:HLLY) versus CarParts.com (NASDAQ:PRTS)

Holley (NYSE:HLLYGet Free Report) and CarParts.com (NASDAQ:PRTSGet Free Report) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Institutional and Insider Ownership

39.7% of Holley shares are held by institutional investors. Comparatively, 75.3% of CarParts.com shares are held by institutional investors. 4.3% of Holley shares are held by company insiders. Comparatively, 9.7% of CarParts.com shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Holley and CarParts.com, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Holley 1 1 5 0 2.57
CarParts.com 1 1 1 0 2.00

Holley currently has a consensus target price of $4.50, indicating a potential upside of 11.25%. CarParts.com has a consensus target price of $1.85, indicating a potential upside of 244.51%. Given CarParts.com’s higher possible upside, analysts plainly believe CarParts.com is more favorable than Holley.

Earnings & Valuation

This table compares Holley and CarParts.com”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Holley $602.22 million 0.81 -$23.24 million ($0.22) -18.39
CarParts.com $588.85 million 0.06 -$40.60 million ($0.96) -0.56

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

Volatility and Risk

Holley has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Profitability

This table compares Holley and CarParts.com’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Holley -4.16% 6.75% 2.53%
CarParts.com -9.69% -76.33% -26.59%

Summary

Holley beats CarParts.com on 10 of the 14 factors compared between the two stocks.

About Holley

(Get Free Report)

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.

About CarParts.com

(Get Free Report)

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.

Receive News & Ratings for Holley Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Holley and related companies with MarketBeat.com's FREE daily email newsletter.