Dorman Products (NASDAQ:DORM – Get Free Report) and REE Automotive (NASDAQ:REE – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.
Analyst Recommendations
This is a summary of recent ratings for Dorman Products and REE Automotive, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Dorman Products | 0 | 3 | 5 | 0 | 2.62 |
| REE Automotive | 1 | 0 | 0 | 0 | 1.00 |
Dorman Products presently has a consensus price target of $147.50, indicating a potential upside of 15.94%. Given Dorman Products’ stronger consensus rating and higher probable upside, research analysts clearly believe Dorman Products is more favorable than REE Automotive.
Profitability
This table compares Dorman Products and REE Automotive’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Dorman Products | 10.18% | 19.37% | 11.53% |
| REE Automotive | N/A | N/A | N/A |
Valuation & Earnings
This table compares Dorman Products and REE Automotive”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Dorman Products | $2.13 billion | 1.77 | $204.19 million | $7.22 | 17.62 |
| REE Automotive | $1.30 million | 1.87 | -$55.81 million | ($5.28) | -0.01 |
Dorman Products has higher revenue and earnings than REE Automotive. REE Automotive is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Dorman Products has a beta of 1.02, meaning that its stock price is 2% more volatile than the S&P 500. Comparatively, REE Automotive has a beta of 2.4, meaning that its stock price is 140% more volatile than the S&P 500.
Insider & Institutional Ownership
84.7% of Dorman Products shares are owned by institutional investors. Comparatively, 12.7% of REE Automotive shares are owned by institutional investors. 7.7% of Dorman Products shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Dorman Products beats REE Automotive on 12 of the 14 factors compared between the two stocks.
About Dorman Products
Dorman Products, Inc. supplies replacement and upgrade parts for passenger cars, light trucks, medium- and heavy-duty trucks, utility terrain vehicles, and all-terrain vehicles in the motor vehicle aftermarket industry in the United States and internationally. It offers engine products, including intake and exhaust manifolds, fans, thermostat housings, and throttle bodies; undercar products comprising fluid lines, fluid reservoirs, connectors, 4-wheel drive components and axles, drain plugs, other engine, and transmission and axle components; steering and suspension products consist of control arms, ball joints, tie-rod ends, brake hardware and hydraulics, wheel and axle hardware, suspension arms, knuckles, links, bushings, and leaf springs, as well as other suspension, steering, and brake components; body products, such as door handles and hinges, window lift motors, window regulators, switches and handles, wiper components, lighting, electrical, and other interior and exterior vehicle body components, including windshields for UTVs; electronics products comprise new and remanufactured modules, clusters and sensors; and hardware products, such as threaded bolts and auto body fasteners, automotive and home electrical wiring components, and other hardware assortments and merchandise. The company also provides air tanks, shock absorbers, and air springs; transmission control modules, variable geometry timing actuators, and other control modules and sensors; new control arms, suspension components, door lock actuators, and handles for electric vehicles; and leaf springs, intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, UTV windshields, and complex electronics modules. It markets its products under the DORMAN, DORMAN OE FIX, HELP!, Conduct-Tite, Dayton Parts, SuperATV, Keller Performance Products, Assault Industries, Gboost, and GDP brands. Dorman Products, Inc. was founded in 1918 and is headquartered in Colmar, Pennsylvania.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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