Head-To-Head Contrast: Motorcar Parts of America (MPAA) versus Metaldyne Performance Group (MPG)
Motorcar Parts of America (NASDAQ: MPAA) and Metaldyne Performance Group (NYSE:MPG) are both auto/tires/trucks companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Metaldyne Performance Group pays an annual dividend of $0.37 per share and has a dividend yield of 1.7%. Motorcar Parts of America does not pay a dividend. Metaldyne Performance Group pays out 25.7% of its earnings in the form of a dividend.
Institutional and Insider Ownership
18.6% of Metaldyne Performance Group shares are held by institutional investors. 4.4% of Motorcar Parts of America shares are held by company insiders. Comparatively, 5.1% of Metaldyne Performance Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Motorcar Parts of America and Metaldyne Performance Group’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Motorcar Parts of America||$430.90 million||1.25||$77.71 million||$1.93||14.98|
|Metaldyne Performance Group||N/A||N/A||N/A||$1.44||15.38|
Motorcar Parts of America has higher revenue and earnings than Metaldyne Performance Group. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Metaldyne Performance Group, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Motorcar Parts of America has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, Metaldyne Performance Group has a beta of 2.07, meaning that its stock price is 107% more volatile than the S&P 500.
This table compares Motorcar Parts of America and Metaldyne Performance Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Motorcar Parts of America||8.75%||16.77%||9.31%|
|Metaldyne Performance Group||2.60%||9.80%||2.11%|
This is a summary of current ratings and target prices for Motorcar Parts of America and Metaldyne Performance Group, 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|
|Metaldyne Performance Group||0||2||0||0||2.00|
Motorcar Parts of America currently has a consensus target price of $36.67, suggesting a potential upside of 26.79%. Metaldyne Performance Group has a consensus target price of $17.50, suggesting a potential downside of 20.99%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, equities analysts clearly believe Motorcar Parts of America is more favorable than Metaldyne Performance Group.
Motorcar Parts of America beats Metaldyne Performance Group on 9 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.
Metaldyne Performance Group Company Profile
Metaldyne Performance Group Inc. provides components for use in engine, transmission and driveline (Powertrain) and chassis, suspension, steering and brake component (Safety-Critical) Platforms for the global light, commercial and industrial vehicle markets. The Company produces these components using complex metal-forming manufacturing technologies and processes for a customer base of vehicle original equipment manufacturers and Tier I suppliers. The Company operates through three segments: HHI, Metaldyne and Grede. Its metal-forming manufacturing technologies and processes include Aluminum Die Casting, Forging, Iron Casting and Powder Metal Forming, as well as value-added manufacturing processes, such as Advanced Machining and Assembly. These technologies and processes are used to create a range of customized Powertrain and Safety-Critical components that address requirements for power density, power generation, power/torque transfer, strength and noise, vibration and harshness.
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