Motorcar Parts of America (NASDAQ:MPAA) vs. Stanley Electric (OTCMKTS:STAEF) Critical Contrast

Stanley Electric (OTCMKTS:STAEF) and Motorcar Parts of America (NASDAQ:MPAA) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, dividends, analyst recommendations, risk and valuation.

Insider & Institutional Ownership

20.7% of Stanley Electric shares are owned by institutional investors. Comparatively, 83.5% of Motorcar Parts of America shares are owned by institutional investors. 8.4% of Motorcar Parts of America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Stanley Electric and Motorcar Parts of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Stanley Electric	N/A	N/A	N/A
Motorcar Parts of America	-0.53%	-0.57%	-0.15%

Analyst Ratings

This is a summary of recent ratings and target prices for Stanley Electric and Motorcar Parts of America, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Stanley Electric	0	0	0	0	0.00
Motorcar Parts of America	1	1	2	0	2.25

Motorcar Parts of America has a consensus price target of $18.00, indicating a potential upside of 56.52%. Given Motorcar Parts of America’s stronger consensus rating and higher possible upside, analysts clearly believe Motorcar Parts of America is more favorable than Stanley Electric.

Valuation & Earnings

This table compares Stanley Electric and Motorcar Parts of America”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Stanley Electric	N/A	N/A	N/A	$145.93	0.14
Motorcar Parts of America	$789.81 million	0.28	$12.39 million	($0.31)	-37.10

Motorcar Parts of America has higher revenue and earnings than Stanley Electric. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Stanley Electric, indicating that it is currently the more affordable of the two stocks.

Summary

Motorcar Parts of America beats Stanley Electric on 6 of the 11 factors compared between the two stocks.

About Stanley Electric

Stanley Electric Co., Ltd., together with its subsidiaries, manufacture, sells, and import/export of automotive and other light bulbs in Japan and internationally. It offers automotive equipment, such as LED and headlamps; rear combination, turn signal, tail, stop, and fog lamps; sensors; automotive LED and light bulbs; electronic products; audio/air-conditioner panels; auto-leveling units; and other accessories and devices. The company provides electronic components, including ultraviolet (UV), visible light, and infrared LEDs; and optical sensors, liquid crystal display (LCD) devices, and UV cold cathode lamps, etc. In addition, it offers applied electronic products, such as LED lighting; operating panels; backlighting units for LCDs; flash units for smartphones, digital cameras, and medical health and industrial equipment; and sensors, etc. Further, the company offers measuring instruments, medical equipment, and other equipment, as well as develops and sells software. Stanley Electric Co., Ltd. was founded in 1920 and is headquartered in Tokyo, Japan.

About Motorcar Parts of America

Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.