Driven Brands (DRVN) versus Its Rivals Critical Comparison

Driven Brands (NASDAQ:DRVN) is one of 168 public companies in the “Diversified Consumer Services” industry, but how does it contrast to its peers? We will compare Driven Brands to related companies based on the strength of its risk, analyst recommendations, earnings, profitability, valuation, dividends and institutional ownership.

Earnings and Valuation

This table compares Driven Brands and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Driven Brands	$1.86 billion	$140.16 million	12.74
Driven Brands Competitors	$3.22 billion	$217.14 million	15.56

Driven Brands’ peers have higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Driven Brands has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Driven Brands’ peers have a beta of 0.47, suggesting that their average share price is 53% less volatile than the S&P 500.

Profitability

This table compares Driven Brands and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	9.08%	25.70%	4.96%
Driven Brands Competitors	-1.99%	-38.79%	2.98%

Analyst Ratings

This is a summary of recent ratings for Driven Brands and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	7	5	2	2.64
Driven Brands Competitors	1365	3351	5235	186	2.42

Driven Brands presently has a consensus price target of $17.18, suggesting a potential upside of 20.36%. As a group, “Diversified Consumer Services” companies have a potential upside of 55.99%. Given Driven Brands’ peers higher probable upside, analysts plainly believe Driven Brands has less favorable growth aspects than its peers.

Institutional and Insider Ownership

77.1% of Driven Brands shares are owned by institutional investors. Comparatively, 48.7% of shares of all “Diversified Consumer Services” companies are owned by institutional investors. 4.4% of Driven Brands shares are owned by company insiders. Comparatively, 19.5% of shares of all “Diversified Consumer Services” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Driven Brands beats its peers on 7 of the 13 factors compared.

About Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.