LKQ (NASDAQ: LKQX) and Genuine Parts (NYSE:GPC) are both cyclical consumer goods & services companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitabiliy and dividends.

Profitability

This table compares LKQ and Genuine Parts’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LKQ 6.00% 16.02% 6.87%
Genuine Parts 4.44% 21.17% 7.79%

Insider & Institutional Ownership

73.2% of Genuine Parts shares are owned by institutional investors. 3.1% of Genuine Parts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for LKQ and Genuine Parts, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LKQ 0 0 0 0 N/A
Genuine Parts 1 5 1 0 2.00

Genuine Parts has a consensus target price of $97.86, suggesting a potential upside of 17.89%. Given Genuine Parts’ higher possible upside, analysts clearly believe Genuine Parts is more favorable than LKQ.

Dividends

Genuine Parts pays an annual dividend of $2.70 per share and has a dividend yield of 3.3%. LKQ does not pay a dividend. Genuine Parts pays out 58.4% of its earnings in the form of a dividend. LKQ has increased its dividend for 60 consecutive years.

Valuation and Earnings

This table compares LKQ and Genuine Parts’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LKQ N/A N/A N/A N/A N/A
Genuine Parts $15.53 billion 0.79 $1.22 billion $4.62 17.97

Genuine Parts has higher revenue and earnings than LKQ.

Summary

Genuine Parts beats LKQ on 8 of the 11 factors compared between the two stocks.

LKQ Company Profile

LKQ Corporation (LKQ) is a distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories, and automotive glass products. The Company’s segments include Wholesale-North America; Europe; Specialty, and Self Service. It offers its customers a range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. It distributes a range of products to collision and mechanical repair shops, including aftermarket collision and mechanical products, recycled collision and mechanical products, refurbished collision products, such as wheels, bumper covers and lights, and re-manufactured engines. It also has operations in North America, Europe and Taiwan. It is a provider of alternative vehicle collision replacement products and alternative vehicle mechanical replacement products.

Genuine Parts Company Profile

Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The Company’s segments include Automotive, Industrial, Office Products Group, Electrical/Electronic Materials and Other. The automotive segment distributes replacement parts for all makes and models of automobiles, trucks and other vehicles. The industrial segment distributes a range of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies. The office products segment distributes a range of office products, computer supplies, office furniture, and business electronics. The electrical/electronic materials segment distributes a range of electrical/electronic materials, including insulating and conductive materials for use in electronic and electrical apparatus.

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