CarParts.com (NASDAQ:PRTS – Get Free Report) and RideNow Group (NASDAQ:RDNW – Get Free Report) are both small-cap consumer discretionary companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Institutional and Insider Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 66.1% of RideNow Group shares are held by institutional investors. 6.6% of CarParts.com shares are held by company insiders. Comparatively, 55.3% of RideNow Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and target prices for CarParts.com and RideNow Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| RideNow Group | 1 | 2 | 0 | 0 | 1.67 |
CarParts.com currently has a consensus price target of $6.00, suggesting a potential downside of 24.34%. RideNow Group has a consensus price target of $8.50, suggesting a potential upside of 73.82%. Given RideNow Group’s stronger consensus rating and higher possible upside, analysts clearly believe RideNow Group is more favorable than CarParts.com.
Earnings & Valuation
This table compares CarParts.com and RideNow Group”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($4.33) | -1.83 |
| RideNow Group | $1.08 billion | 0.18 | -$52.40 million | ($0.23) | -21.26 |
CarParts.com has higher earnings, but lower revenue than RideNow Group. RideNow Group is trading at a lower price-to-earnings ratio than CarParts.com, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
CarParts.com has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500. Comparatively, RideNow Group has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Profitability
This table compares CarParts.com and RideNow Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -5.35% | -47.19% | -14.52% |
| RideNow Group | -0.76% | N/A | -1.17% |
Summary
RideNow Group beats CarParts.com on 10 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 RideNow Group
RumbleOn, Inc. primarily operates as a powersports retailer in the United States. It operates in two segments, Powersports and Vehicle Transportation Services. The Powersports segment provides new and pre-owned motorcycles, all-terrain vehicles, utility terrain or side-by-side vehicles, personal watercraft, snowmobiles, and other powersports products. It also offers parts, apparel, accessories, finance and insurance products and services, and aftermarket products, as well as repair and maintenance services. The Vehicle Transportation Services segment provides asset-light transportation brokerage services facilitating automobile transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleOn, Inc. in February 2017. The company was incorporated in 2013 and is based in Irving, Texas.
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