CarParts.com (NASDAQ:PRTS – Get Free Report) and American Axle & Manufacturing (NYSE:AXL – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, profitability, valuation, dividends and risk.
Profitability
This table compares CarParts.com and American Axle & Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -9.69% | -76.33% | -26.59% |
| American Axle & Manufacturing | 0.72% | 7.92% | 0.97% |
Risk and Volatility
CarParts.com has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Insider and Institutional Ownership
Valuation & Earnings
This table compares CarParts.com and American Axle & Manufacturing”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $588.85 million | 0.06 | -$40.60 million | ($0.96) | -0.50 |
| American Axle & Manufacturing | $6.12 billion | 0.17 | $33.80 million | $0.33 | 27.24 |
American Axle & Manufacturing has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than American Axle & Manufacturing, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for CarParts.com and American Axle & Manufacturing, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| American Axle & Manufacturing | 0 | 3 | 4 | 0 | 2.57 |
CarParts.com currently has a consensus target price of $1.85, suggesting a potential upside of 283.02%. American Axle & Manufacturing has a consensus target price of $9.92, suggesting a potential upside of 10.31%. Given CarParts.com’s higher possible upside, research analysts clearly believe CarParts.com is more favorable than American Axle & Manufacturing.
Summary
American Axle & Manufacturing beats CarParts.com on 12 of the 14 factors compared between the two stocks.
About CarParts.com
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.
About American Axle & Manufacturing
American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994, and is headquartered in Detroit, MI.
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