Critical Survey: Holley (NYSE:HLLY) versus Carbon Streaming (OTCMKTS:OFSTF)

Carbon Streaming (OTCMKTS:OFSTF) and Holley (NYSE:HLLY) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Insider and Institutional Ownership

39.7% of Holley shares are held by institutional investors. 2.4% of Carbon Streaming shares are held by insiders. Comparatively, 4.9% of Holley shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Carbon Streaming and Holley, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Streaming	0	0	0	0	0.00
Holley	1	1	4	0	2.50

Holley has a consensus target price of $4.90, indicating a potential upside of 69.84%. Given Holley’s stronger consensus rating and higher probable upside, analysts clearly believe Holley is more favorable than Carbon Streaming.

Profitability

This table compares Carbon Streaming and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Streaming	-8,270.00%	-0.17%	-0.16%
Holley	3.89%	5.46%	2.09%

Earnings and Valuation

This table compares Carbon Streaming and Holley”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Streaming	$30,000.00	1,122.33	-$2.48 million	N/A	N/A
Holley	$613.51 million	0.57	$19.17 million	$0.19	15.18

Holley has higher revenue and earnings than Carbon Streaming.

Risk and Volatility

Carbon Streaming has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Holley has a beta of 1.4, meaning that its share price is 40% more volatile than the S&P 500.

Summary

Holley beats Carbon Streaming on 11 of the 12 factors compared between the two stocks.

About Carbon Streaming

Carbon Streaming Corporation a carbon credit streaming and royalty company focused on creating shareholder value primarily through the acquisition and sale of carbon credits. It provides capital to carbon projects globally, primarily by entering into or acquiring streaming, royalty or royalty-like arrangements for the purchase of carbon credits. The company was formerly known as Mexivada Mining Corp. and changed its name to Carbon Streaming Corporation in June 2020. Carbon Streaming Corporation was incorporated in 2004 and is headquartered in Burlington, Canada.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.