U.S. Auto Parts (NASDAQ: PRTS) and AutoZone (NYSE:AZO) are both retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, profitability, risk, analyst recommendations, dividends, valuation and institutional ownership.
Valuation & Earnings
This table compares U.S. Auto Parts and AutoZone’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|U.S. Auto Parts||$303.37 million||0.23||$24.01 million||$0.10||20.20|
|AutoZone||$10.89 billion||1.51||$1.28 billion||$43.04||14.03|
Institutional & Insider Ownership
61.3% of U.S. Auto Parts shares are owned by institutional investors. Comparatively, 95.9% of AutoZone shares are owned by institutional investors. 42.2% of U.S. Auto Parts shares are owned by insiders. Comparatively, 2.8% of AutoZone shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a breakdown of current ratings and target prices for U.S. Auto Parts and AutoZone, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|U.S. Auto Parts||0||0||1||0||3.00|
U.S. Auto Parts currently has a consensus price target of $4.00, suggesting a potential upside of 98.02%. AutoZone has a consensus price target of $755.18, suggesting a potential upside of 25.03%. Given U.S. Auto Parts’ stronger consensus rating and higher possible upside, equities research analysts clearly believe U.S. Auto Parts is more favorable than AutoZone.
Risk and Volatility
U.S. Auto Parts has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, AutoZone has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
This table compares U.S. Auto Parts and AutoZone’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|U.S. Auto Parts||7.92%||7.77%||2.88%|
AutoZone beats U.S. Auto Parts on 8 of the 14 factors compared between the two stocks.
U.S. Auto Parts Company Profile
U.S. Auto Parts Network, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories primarily in the United States and the Philippines. It offers collision parts, such as parts for the exterior of an automobile; mirror products; engine parts comprising engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories to individual consumers through its network of e-commerce Websites and online marketplaces. The company also sells and delivers auto parts to collision repair shops from its Chesapeake, Virginia warehouse facility; markets Kool-Vue products to auto parts wholesale distributors; aftermarket catalytic converters under the Evan Fischer brand; and serves consumers by operating a retail outlet store in LaSalle, Illinois. Its flagship Websites includes www.autopartswarehouse.com, www.carparts.com, www.jcwhitney.com, and AutoMD.com. U.S. Auto Parts Network, Inc. was founded in 1995 and is headquartered in Carson, California.
AutoZone Company Profile
AutoZone, Inc. retails and distributes automotive replacement parts and accessories. It offers various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. The company's products include A/C compressors, batteries and accessories, bearings, belts and hoses, calipers, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition and lighting products, mufflers, radiators, thermostats, starters and alternators, and water pumps. It also offers maintenance products, such as antifreeze and windshield washer fluids; brake drums, rotors, shoes, and pads; brake and power steering fluids, and oil and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paints and accessories; refrigerants and accessories; shock absorbers and struts; spark plugs and wires; and windshield wipers, as well as air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, interior and exterior accessories, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. In addition, the company provides a sales program that offers commercial credit and delivery of parts and other products; and tire repair services. Further, it sells automotive diagnostic and repair software under the ALLDATA brand through alldata.com and alldatadiy.com; automotive hard parts, maintenance items, accessories, and non-automotive products through autozone.com; and accessories, performance, and replacement parts through autoanything.com. As of December 05, 2017, it operated 5,480 stores in the United States, including Puerto Rico; 529 stores in Mexico; 14 stores in Brazil; and 26 Interamerican Motor Corporation branches. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.
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