Critical Comparison: Motorcar Parts of America (MPAA) versus Superior Industries International (NYSE:SUP)
Motorcar Parts of America (NASDAQ: MPAA) and Superior Industries International (NYSE:SUP) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitabiliy, risk, analyst recommendations, dividends, institutional ownership and valuation.
Institutional & Insider Ownership
84.6% of Superior Industries International shares are owned by institutional investors. 4.4% of Motorcar Parts of America shares are owned by company insiders. Comparatively, 2.1% of Superior Industries International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings and recommmendations for Motorcar Parts of America and Superior Industries International, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Motorcar Parts of America||0||0||3||0||3.00|
|Superior Industries International||0||1||2||0||2.67|
Motorcar Parts of America currently has a consensus target price of $36.33, suggesting a potential upside of 29.67%. Superior Industries International has a consensus target price of $31.00, suggesting a potential upside of 57.36%. Given Superior Industries International’s higher possible upside, analysts plainly believe Superior Industries International is more favorable than Motorcar Parts of America.
Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 1.8%. Motorcar Parts of America does not pay a dividend. Superior Industries International pays out 30.5% of its earnings in the form of a dividend.
This table compares Motorcar Parts of America and Superior Industries International’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%|
|Superior Industries International||4.17%||10.26%||7.67%|
Earnings & Valuation
This table compares Motorcar Parts of America and Superior Industries International’s revenue, earnings per share 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||14.52|
|Superior Industries International||$720.83 million||0.68||$80.66 million||$1.18||16.69|
Superior Industries International has higher revenue and earnings than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Superior Industries International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Motorcar Parts of America has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Superior Industries International has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500.
Motorcar Parts of America beats Superior Industries International on 10 of the 16 factors compared between the two stocks.
About Motorcar Parts of America
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.
About Superior Industries International
Superior Industries International, Inc. is engaged in the design and manufacture of aluminum wheels for sale to original equipment manufacturers (OEMs). The Company supplies cast aluminum wheels to automobile and light truck manufacturers, with wheel manufacturing operations in the United States and Mexico. The Company offers wheels in a range of finishes, which include Bright Machined, Polished Face with Painted Window, Fully Painted, Premium Paint, Polished, Chrome Clad and Mirror Finish Ultra Bright Machining. The Company’s products, which are manufactured in its North American facilities, are delivered primarily to automotive assembly operations in North America for global OEMs. Its OEM aluminum wheels are primarily sold for factory installation, as either optional or standard equipment, on various vehicle models. As of December 31, 2015, the Company operated five manufacturing facilities in the United States and Mexico.
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