Holley (NYSE:HLLY) and Motorcar Parts of America (NASDAQ:MPAA) Financial Contrast

Motorcar Parts of America (NASDAQ:MPAAGet Rating) and Holley (NYSE:HLLYGet Rating) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Motorcar Parts of America and Holley, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Motorcar Parts of America 0 0 0 0 N/A
Holley 0 2 5 0 2.71

Holley has a consensus price target of $8.11, suggesting a potential upside of 203.79%. Given Holley’s higher probable upside, analysts plainly believe Holley is more favorable than Motorcar Parts of America.

Volatility and Risk

Motorcar Parts of America has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Holley has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500.

Institutional and Insider Ownership

93.3% of Motorcar Parts of America shares are owned by institutional investors. 7.7% of Motorcar Parts of America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Motorcar Parts of America and Holley’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Motorcar Parts of America $650.31 million 0.40 $7.36 million ($0.21) -63.38
Holley $692.85 million 0.46 -$27.14 million $0.61 4.38

Motorcar Parts of America has higher earnings, but lower revenue than Holley. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Motorcar Parts of America and Holley’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Motorcar Parts of America -0.59% 6.36% 2.01%
Holley 9.95% 10.92% 3.18%

Summary

Holley beats Motorcar Parts of America on 8 of the 12 factors compared between the two stocks.

About Motorcar Parts of America

(Get Rating)

Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers test solutions and diagnostic equipment for electric vehicle powertrain development and manufacturing, including electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems, as well as test systems for alternators, starters, belt starter generator, and bench-top testers, as well as turbochargers and test services for electric vehicle inverters. The company sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. Motorcar Parts of America, Inc. was founded in 1968 and is headquartered in Torrance, California.

About Holley

(Get Rating)

Holley Inc. designs, manufactures, and markets automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. The company's 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 wheels, chassis and suspension products, helmets, head and neck restraints, seat belts, firesuits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, APR, MSD, Flowmaster, Powerteq, Accel, and Simpson brands to retailers directly, as well as through distributors and online channel. The company was founded in 1903 and is headquartered in Bowling Green, Kentucky.

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