Motorcar Parts of America (NASDAQ: MPAA) and Fox Factory Holding Corp. (NASDAQ:FOXF) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitabiliy, dividends, institutional ownership, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Motorcar Parts of America and Fox Factory Holding Corp.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Motorcar Parts of America 8.92% 18.59% 9.92%
Fox Factory Holding Corp. 10.01% 30.07% 16.33%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Motorcar Parts of America and Fox Factory Holding Corp., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Motorcar Parts of America 0 0 2 0 3.00
Fox Factory Holding Corp. 0 5 2 0 2.29

Motorcar Parts of America currently has a consensus target price of $35.00, indicating a potential upside of 24.69%. Fox Factory Holding Corp. has a consensus target price of $30.17, indicating a potential downside of 17.91%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, analysts plainly believe Motorcar Parts of America is more favorable than Fox Factory Holding Corp..

Institutional & Insider Ownership

95.7% of Fox Factory Holding Corp. shares are owned by institutional investors. 4.4% of Motorcar Parts of America shares are owned by company insiders. Comparatively, 21.4% of Fox Factory Holding Corp. shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Motorcar Parts of America and Fox Factory Holding Corp.’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Motorcar Parts of America $421.25 million 1.24 $75.53 million $1.93 14.54
Fox Factory Holding Corp. $429.19 million 3.19 $69.55 million $1.13 32.52

Motorcar Parts of America has higher revenue, but lower earnings than Fox Factory Holding Corp.. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Fox Factory Holding Corp., indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Motorcar Parts of America has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Fox Factory Holding Corp. has a beta of 0.67, suggesting that its stock price is 33% less volatile than the S&P 500.

Summary

Fox Factory Holding Corp. beats Motorcar Parts of America on 8 of the 13 factors compared between the two stocks.

Motorcar Parts of America Company Profile

Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.

Fox Factory Holding Corp. Company Profile

Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.

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