CarParts.com (NASDAQ:PRTS – Get Free Report) and Magna International (NYSE:MGA – Get Free Report) are both auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares CarParts.com and Magna International”s 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 | ($0.94) | -0.68 |
| Magna International | $42.84 billion | 0.29 | $1.01 billion | $4.26 | 10.51 |
Profitability
This table compares CarParts.com and Magna International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -9.25% | -67.30% | -25.32% |
| Magna International | 2.91% | 11.89% | 4.58% |
Analyst Recommendations
This is a breakdown of current ratings and price targets for CarParts.com and Magna International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| Magna International | 1 | 15 | 3 | 0 | 2.11 |
CarParts.com presently has a consensus price target of $1.85, indicating a potential upside of 188.07%. Magna International has a consensus price target of $45.50, indicating a potential upside of 1.64%. Given CarParts.com’s higher probable upside, analysts clearly believe CarParts.com is more favorable than Magna International.
Institutional and Insider Ownership
75.3% of CarParts.com shares are owned by institutional investors. Comparatively, 67.5% of Magna International shares are owned by institutional investors. 9.7% of CarParts.com shares are owned by insiders. Comparatively, 0.5% of Magna International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Risk and Volatility
CarParts.com has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Magna International has a beta of 1.53, suggesting that its stock price is 53% more volatile than the S&P 500.
Summary
Magna International beats CarParts.com on 11 of the 14 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 Magna International
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis system, battery enclosures, and engineering and testing; and exteriors, including fascia and trims, front end modules, integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, breakthrough lightings, side doors, and greenhouse products. The Power & Vision segment offers electric drive systems and components, such as emotors, inverters, onboard chargers, gearboxes, and e-clutch; dedicated hybrid drives, dual and hybrid dual clutch, and manual transmissions; AWD/4WD products and rear drive modules; transmission, driveline components, and ICE; far camera module, remote camera heads, interior sensing camera, radars, thermal sensing, and domain controllers; interior and exterior mirrors, camera monitoring system driver/occupant monitoring systems, and smart actuators; forward and rear lighting, and lit grilles/panels/displays; latching system, door modules, charge port doors, power system, hinges, and door handles; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.
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