Head-To-Head Analysis: Holley (NYSE:HLLY) vs. Federal Screw Works (OTCMKTS:FSCR)

Federal Screw Works (OTCMKTS:FSCR) and Holley (NYSE:HLLY) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, institutional ownership, earnings, profitability, risk and analyst recommendations.

Earnings & Valuation

This table compares Federal Screw Works and Holley”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.13	$1.62 million	$0.71	13.38
Holley	$613.51 million	1.05	$19.17 million	$0.15	18.17

Holley has higher revenue and earnings than Federal Screw Works. Federal Screw Works 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 Federal Screw Works and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	0.99%	N/A	N/A
Holley	3.13%	4.84%	1.83%

Analyst Ratings

This is a breakdown of current ratings for Federal Screw Works and Holley, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
Holley	1	1	5	0	2.57

Holley has a consensus price target of $4.67, suggesting a potential upside of 71.25%. Given Holley’s stronger consensus rating and higher possible upside, analysts clearly believe Holley is more favorable than Federal Screw Works.

Institutional and Insider Ownership

39.7% of Holley shares are held by institutional investors. 46.2% of Federal Screw Works shares are held by company insiders. Comparatively, 4.3% of Holley shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

Federal Screw Works has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, Holley has a beta of 1.32, suggesting that its stock price is 32% more volatile than the S&P 500.

Summary

Holley beats Federal Screw Works on 12 of the 14 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

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.