CarParts.com (NASDAQ:PRTS – Get Free Report) and XPEL (NASDAQ:XPEL – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, earnings, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
75.3% of CarParts.com shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 9.7% of CarParts.com shares are owned by insiders. Comparatively, 9.5% of XPEL shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Risk & Volatility
CarParts.com has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, XPEL has a beta of 1.27, suggesting that its share price is 27% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $560.63 million | 0.06 | -$40.60 million | ($0.96) | -0.50 |
| XPEL | $420.40 million | 3.62 | $45.49 million | $1.69 | 32.51 |
XPEL has lower revenue, but higher earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CarParts.com and XPEL’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -9.69% | -76.33% | -26.59% |
| XPEL | 10.12% | 19.20% | 14.79% |
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for CarParts.com and XPEL, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| XPEL | 0 | 2 | 0 | 0 | 2.00 |
CarParts.com presently has a consensus price target of $1.85, indicating a potential upside of 285.50%. Given CarParts.com’s higher possible upside, equities research analysts plainly believe CarParts.com is more favorable than XPEL.
Summary
XPEL beats CarParts.com on 8 of the 13 factors compared between the two stocks.
About CarParts.com
CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.
About XPEL
XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.
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