Head-To-Head Survey: American Axle & Manufacturing (NYSE:AXL) vs. CarParts.com (NASDAQ:PRTS)

CarParts.com (NASDAQ:PRTS) and American Axle & Manufacturing (NYSE:AXL) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares CarParts.com and American Axle & Manufacturing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CarParts.com	-9.69%	-76.33%	-26.59%
American Axle & Manufacturing	0.72%	7.92%	0.97%

Institutional & Insider Ownership

75.3% of CarParts.com shares are held by institutional investors. Comparatively, 91.4% of American Axle & Manufacturing shares are held by institutional investors. 9.7% of CarParts.com shares are held by company insiders. Comparatively, 3.7% of American Axle & Manufacturing shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CarParts.com and American Axle & Manufacturing, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarParts.com	1	1	1	0	2.00
American Axle & Manufacturing	0	3	4	0	2.57

CarParts.com presently has a consensus target price of $1.85, indicating a potential upside of 270.00%. American Axle & Manufacturing has a consensus target price of $9.92, indicating a potential upside of 24.50%. Given CarParts.com’s higher probable upside, equities research analysts clearly believe CarParts.com is more favorable than American Axle & Manufacturing.

Risk & Volatility

CarParts.com has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500. Comparatively, American Axle & Manufacturing has a beta of 1.6, meaning that its stock price is 60% more volatile than the S&P 500.

Valuation & Earnings

This table compares CarParts.com and American Axle & Manufacturing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarParts.com	$560.63 million	0.06	-$40.60 million	($0.96)	-0.52
American Axle & Manufacturing	$6.12 billion	0.15	$33.80 million	$0.33	24.14

American Axle & Manufacturing has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than American Axle & Manufacturing, indicating that it is currently the more affordable of the two stocks.

Summary

American Axle & Manufacturing beats CarParts.com on 12 of the 14 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 American Axle & Manufacturing

American Axle & Manufacturing Holdings, Inc. engages in the manufacture, engineering, design, and validation of driveline systems and related components. It operates through the Driveline and Metal Forming segments. The Driveline segment consists of axles, drive shafts, power transfer units, rear drive modules, and electric and hybrid driveline products and systems for light trucks, service utility vehicles, crossover vehicles, passenger cars, and commercial vehicles. The Metal Forming segment manufactures axle shafts, ring and pinion gears, differential gears, transmission gears, and shafts and suspension components for original equipment manufacturers (OEMs), and Tier 1 automotive suppliers. The company was founded by Richard E. Dauch on March 1, 1994, and is headquartered in Detroit, MI.