Holley (NYSE:HLLY) vs. Nokian Renkaat Oyj (OTCMKTS:NKRKY) Critical Contrast

Nokian Renkaat Oyj (OTCMKTS:NKRKY) and Holley (NYSE:HLLY) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

0.2% of Nokian Renkaat Oyj shares are owned by institutional investors. Comparatively, 39.7% of Holley shares are owned by institutional investors. 4.9% of Holley shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Nokian Renkaat Oyj and Holley, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nokian Renkaat Oyj	0	1	0	0	2.00
Holley	1	1	3	1	2.67

Holley has a consensus price target of $4.90, suggesting a potential upside of 57.30%. Given Holley’s stronger consensus rating and higher probable upside, analysts plainly believe Holley is more favorable than Nokian Renkaat Oyj.

Valuation and Earnings

This table compares Nokian Renkaat Oyj and Holley”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nokian Renkaat Oyj	N/A	N/A	N/A	$0.45	18.72
Holley	$613.51 million	0.62	$19.17 million	$0.08	38.94

Holley has higher revenue and earnings than Nokian Renkaat Oyj. Nokian Renkaat Oyj is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Nokian Renkaat Oyj and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nokian Renkaat Oyj	N/A	N/A	N/A
Holley	1.68%	8.41%	3.23%

Summary

Holley beats Nokian Renkaat Oyj on 11 of the 12 factors compared between the two stocks.

About Nokian Renkaat Oyj

Nokian Renkaat Oyj develops and manufactures tires in Finland, Nordics, the rest of Europe, the Americas, and internationally. It operates through Passenger Car Tyres, Heavy Tyres, and Vianor segments. The Passenger Car Tyres segment develops and produces summer, winter, and all-season tires for cars and vans. The Heavy Tyres segment offers tires for forestry machinery; special tires for agricultural machinery, tractors, and industrial machinery; and retreading materials and truck tires. The Vianor segment sells car and van tires, as well as truck tires under the Nokian Tyres and other tire brands. This segment also provides automotive products and services. It distributes its products through its own Vianor service centers and service centers run by partners, the Nokian Tyres Authorized Dealer (NAD) partners, and other tire and vehicle retailers, wholesalers, distributors, as well as online stores. Nokian Renkaat Oyj was founded in 1898 and is headquartered in Nokia, Finland.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.