Genuine Parts (NYSE:GPC) versus Alliance Entertainment (NASDAQ:AENTW) Critical Comparison

Alliance Entertainment (NASDAQ:AENTW) and Genuine Parts (NYSE:GPC) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Institutional & Insider Ownership

78.8% of Genuine Parts shares are owned by institutional investors. 0.1% of Genuine Parts shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Alliance Entertainment and Genuine Parts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alliance Entertainment	0	0	0	0	0.00
Genuine Parts	0	5	3	1	2.56

Genuine Parts has a consensus target price of $147.86, suggesting a potential upside of 10.50%. Given Genuine Parts’ stronger consensus rating and higher possible upside, analysts plainly believe Genuine Parts is more favorable than Alliance Entertainment.

Earnings & Valuation

This table compares Alliance Entertainment and Genuine Parts”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alliance Entertainment	$1.11 billion	N/A	N/A	N/A	N/A
Genuine Parts	$24.30 billion	0.76	$65.94 million	$0.25	535.24

Genuine Parts has higher revenue and earnings than Alliance Entertainment.

Profitability

This table compares Alliance Entertainment and Genuine Parts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alliance Entertainment	N/A	N/A	N/A
Genuine Parts	0.13%	22.59%	4.94%

Summary

Genuine Parts beats Alliance Entertainment on 10 of the 10 factors compared between the two stocks.

About Alliance Entertainment

Alliance Entertainment Holding Corporation operates as a wholesaler, retailer, distributor, and e-commerce provider for the entertainment industry worldwide. The company offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. It also provides third party logistics products and services. Alliance Entertainment Holding Corporation distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company exports its products. Alliance Entertainment Holding Corporation was founded in 1990 and is headquartered in Plantation, Florida.

About Genuine Parts

Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals. It also distributes industrial replacement parts and related supplies, such as abrasives, adhesives, sealants and tape, bearings, chemicals, cutting tools, electrical, facility maintenance, hose and fittings, hydraulics, janitorial, mechanical power transmission, pneumatics, process pumps and equipment, safety, seals and gaskets, and tools and testing instruments, as well as maintenance, repair, and operation customers in aggregate and cement, automotive, chemical and allied products, equipment and machinery, equipment rental and leasing, fabricated metals, food and beverage, iron and steel, lumber and wood, oil and gas, pulp and paper, and rubber products. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Spain, Portugal, Australia, New Zealand, Mexico, Indonesia, and Singapore. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.