Driven Brands (DRVN) & Its Competitors Financial Analysis

Driven Brands (NASDAQ:DRVN) is one of 168 public companies in the “Diversified Consumer Services” industry, but how does it weigh in compared to its competitors? We will compare Driven Brands to related businesses based on the strength of its risk, institutional ownership, profitability, dividends, analyst recommendations, valuation and earnings.

Valuation and Earnings

This table compares Driven Brands and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Driven Brands	$1.93 billion	$140.16 million	12.82
Driven Brands Competitors	$3.59 billion	$218.13 million	16.36

Driven Brands’ competitors have higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Driven Brands and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	8.61%	24.50%	4.91%
Driven Brands Competitors	-2.08%	-39.06%	3.00%

Risk and Volatility

Driven Brands has a beta of 0.95, meaning that its stock price is 5% less volatile than the S&P 500. Comparatively, Driven Brands’ competitors have a beta of 0.48, meaning that their average stock price is 52% less volatile than the S&P 500.

Institutional & Insider Ownership

77.1% of Driven Brands shares are held by institutional investors. Comparatively, 48.7% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 4.4% of Driven Brands shares are held by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Driven Brands and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	7	5	2	2.64
Driven Brands Competitors	1372	3369	5251	188	2.42

Driven Brands currently has a consensus target price of $16.77, indicating a potential upside of 25.84%. As a group, “Diversified Consumer Services” companies have a potential upside of 54.56%. Given Driven Brands’ competitors higher possible upside, analysts plainly believe Driven Brands has less favorable growth aspects than its competitors.

Summary

Driven Brands beats its competitors on 7 of the 13 factors compared.

Driven Brands Company Profile

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.