Holley (NYSE:HLLY – Get Free Report) and Denso (OTCMKTS:DNZOY – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Volatility and Risk
Holley has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Denso has a beta of 0.92, suggesting that its share price is 8% less volatile than the S&P 500.
Institutional & Insider Ownership
39.7% of Holley shares are held by institutional investors. 4.9% of Holley shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Holley and Denso”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Holley | $613.15 million | 0.42 | $19.17 million | $0.08 | 26.31 |
| Denso | $50.09 billion | 0.69 | $2.93 billion | $1.03 | 11.52 |
Denso has higher revenue and earnings than Holley. Denso is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and target prices for Holley and Denso, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Holley | 1 | 3 | 3 | 0 | 2.29 |
| Denso | 0 | 3 | 0 | 0 | 2.00 |
Holley currently has a consensus target price of $4.60, suggesting a potential upside of 118.53%. Given Holley’s stronger consensus rating and higher possible upside, equities analysts clearly believe Holley is more favorable than Denso.
Profitability
This table compares Holley and Denso’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Holley | 1.68% | 8.41% | 3.23% |
| Denso | 5.57% | 7.74% | 4.89% |
Summary
Holley beats Denso on 8 of the 14 factors compared between the two stocks.
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.
About Denso
DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.
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