CarParts.com (NASDAQ:PRTS – Get Free Report) and XPEL (NASDAQ:XPEL – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Institutional & Insider Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 75.1% of XPEL shares are held by institutional investors. 9.7% of CarParts.com shares are held by company insiders. Comparatively, 9.5% of XPEL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
CarParts.com has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, XPEL has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| XPEL | 0 | 2 | 0 | 0 | 2.00 |
CarParts.com currently has a consensus price target of $1.85, suggesting a potential upside of 284.62%. Given CarParts.com’s higher probable upside, research analysts clearly believe CarParts.com is more favorable than XPEL.
Profitability
This table compares CarParts.com and XPEL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -9.69% | -76.33% | -26.59% |
| XPEL | 10.12% | 19.20% | 14.79% |
Valuation & Earnings
This table compares CarParts.com and XPEL”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $588.85 million | 0.06 | -$40.60 million | ($0.96) | -0.50 |
| XPEL | $420.40 million | 3.55 | $45.49 million | $1.69 | 31.93 |
XPEL has lower revenue, but higher earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.
Summary
XPEL beats CarParts.com on 8 of the 13 factors compared between the two stocks.
About CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
About XPEL
XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.
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