Continental (NASDAQ: MPAA) and Motorcar Parts of America (NASDAQ:MPAA) are both auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
This is a summary of recent ratings and price targets for Continental and Motorcar Parts of America, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||1||1||0||2.50|
Motorcar Parts of America has a consensus price target of $32.00, indicating a potential upside of 24.18%. Given Motorcar Parts of America’s higher possible upside, analysts plainly believe Motorcar Parts of America is more favorable than Continental.
This table compares Continental and Motorcar Parts of America’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||0.86%||10.53%||5.81%|
Continental pays an annual dividend of $0.77 per share and has a dividend yield of 2.2%. Motorcar Parts of America does not pay a dividend. Continental pays out 22.8% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares Continental and Motorcar Parts of America’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Continental||$49.74 billion||0.72||$3.37 billion||$3.37||10.56|
|Motorcar Parts of America||$428.07 million||1.14||$16.31 million||$1.70||15.16|
Continental has higher revenue and earnings than Motorcar Parts of America. Continental is trading at a lower price-to-earnings ratio than Motorcar Parts of America, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Continental has a beta of 1.35, meaning that its stock price is 35% more volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 1.81, meaning that its stock price is 81% more volatile than the S&P 500.
Insider and Institutional Ownership
0.1% of Continental shares are held by institutional investors. 4.7% of Motorcar Parts of America shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Continental beats Motorcar Parts of America on 10 of the 16 factors compared between the two stocks.
Continental Company Profile
Continental Aktiengesellschaft provides products and services primarily for the automotive industry worldwide. It operates through Chassis&Safety, Powertrain, Interior, Tires, and ContiTech segments. The Chassis&Safety segment develops, produces, and markets intelligent systems to enhance driving safety and vehicle dynamics. This segment offers advanced driver assistance systems, hydraulic brake systems, passive safety and sensoric products, and vehicle dynamics products. The Powertrain segment provides engine systems, fuel and exhaust management systems, hybrid electric vehicles, sensors and actuators, and transmission products. The Interior segment develops and produces information, communication, and network solutions for cars and commercial vehicles, such as body and security, commercial vehicle and aftermarket, infotainment and connectivity, instrumentation and driver HMI, and intelligent transportation systems. The Tires segment provides passenger and light truck equipment, commercial vehicle, and two-wheel tires for use in vehicle manufacture and replacement businesses. The ContiTech segment develops, manufactures, and markets functional parts, and intelligent components and systems made of rubber, plastic, metal, and fabric for the machine and plant engineering, mining, agriculture, automotive, and other industries. This segment provides air spring systems, industrial fluid solutions, mobile fluid systems, and vibration control products, as well as conveyor belts and power transmission products. It also offers design, functional, foam, and compact foils, as well as artificial leather for the furniture and construction industries, as well as automotive sector. The company also provides engineering, business consulting, and fleet services. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.
Motorcar Parts of America Company Profile
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy duty trucks, and industrial and agricultural application parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; brake master cylinders; and other products, such as turbochargers, brake power boosters, and diagnostic equipment. 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 founded in 1968 and is headquartered in Torrance, California.
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