Pool (NASDAQ:POOL) & Genuine Parts (NYSE:GPC) Head-To-Head Contrast

Genuine Parts (NYSE:GPC) and Pool (NASDAQ:POOL) are both consumer discretionary companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, risk, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

78.8% of Genuine Parts shares are owned by institutional investors. Comparatively, 99.0% of Pool shares are owned by institutional investors. 0.1% of Genuine Parts shares are owned by insiders. Comparatively, 3.0% of Pool shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Genuine Parts has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Pool has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Genuine Parts and Pool”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Genuine Parts	$24.30 billion	0.70	$65.94 million	$0.25	494.86
Pool	$5.29 billion	1.46	$406.40 million	$10.87	19.85

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

Analyst Ratings

This is a breakdown of recent ratings and target prices for Genuine Parts and Pool, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Genuine Parts	0	5	4	1	2.60
Pool	3	5	5	0	2.15

Genuine Parts presently has a consensus target price of $145.00, suggesting a potential upside of 17.20%. Pool has a consensus target price of $227.70, suggesting a potential upside of 5.52%. Given Genuine Parts’ stronger consensus rating and higher probable upside, equities research analysts clearly believe Genuine Parts is more favorable than Pool.

Dividends

Genuine Parts pays an annual dividend of $4.25 per share and has a dividend yield of 3.4%. Pool pays an annual dividend of $5.20 per share and has a dividend yield of 2.4%. Genuine Parts pays out 1,700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Pool pays out 47.8% of its earnings in the form of a dividend. Genuine Parts has raised its dividend for 70 consecutive years and Pool has raised its dividend for 15 consecutive years. Genuine Parts is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Genuine Parts and Pool’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Genuine Parts	0.12%	23.00%	4.95%
Pool	7.27%	33.50%	10.82%

Summary

Pool beats Genuine Parts on 11 of the 18 factors compared between the two stocks.

About Genuine Parts

Genuine Parts Company is a distributor of automotive replacement parts and industrial products. Founded in 1928 and headquartered in Atlanta, Georgia, the company serves businesses and consumers through its distribution networks and brands. Its automotive business distributes replacement parts, accessories and related products, including through the NAPA Auto Parts brand. Its industrial business, operating primarily as Motion, supplies products such as bearings, power-transmission components, fluid-power equipment and other maintenance and repair items to industrial customers.

About Pool

Pool Corporation, doing business as POOL, is a wholesale distributor of swimming pool and related outdoor living products. It supplies pool builders, service companies, retailers and other professionals with products used to construct, maintain, repair and renovate swimming pools. Its offerings include pool and spa equipment, chemicals, parts, maintenance supplies and accessories, as well as products for outdoor living and, in some markets, irrigation and landscape applications. Pool Corporation distributes these products through a network of sales centers and distribution facilities.