LKQ Corporation (NASDAQ:LKQ) versus Genuine Parts Company (GPC) Financial Analysis
Genuine Parts Company (NYSE: GPC) and LKQ Corporation (NASDAQ:LKQ) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, earnings, valuation, profitabiliy and institutional ownership.
Valuation & Earnings
This table compares Genuine Parts Company and LKQ Corporation’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Genuine Parts Company||$15.53 billion||0.82||$1.22 billion||$4.62||18.77|
|LKQ Corporation||$9.01 billion||1.07||$1.06 billion||$1.58||19.87|
Genuine Parts Company has higher revenue and earnings than LKQ Corporation. Genuine Parts Company is trading at a lower price-to-earnings ratio than LKQ Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of current ratings and recommmendations for Genuine Parts Company and LKQ Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Genuine Parts Company||1||6||1||0||2.00|
Genuine Parts Company currently has a consensus target price of $98.88, suggesting a potential upside of 13.99%. LKQ Corporation has a consensus target price of $39.60, suggesting a potential upside of 26.15%. Given LKQ Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe LKQ Corporation is more favorable than Genuine Parts Company.
Risk & Volatility
Genuine Parts Company has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, LKQ Corporation has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.
This table compares Genuine Parts Company and LKQ Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Genuine Parts Company||4.44%||21.17%||7.79%|
Insider and Institutional Ownership
73.9% of Genuine Parts Company shares are held by institutional investors. Comparatively, 92.7% of LKQ Corporation shares are held by institutional investors. 3.1% of Genuine Parts Company shares are held by company insiders. Comparatively, 1.1% of LKQ Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Genuine Parts Company pays an annual dividend of $2.70 per share and has a dividend yield of 3.1%. LKQ Corporation does not pay a dividend. Genuine Parts Company pays out 58.4% of its earnings in the form of a dividend. LKQ Corporation has increased its dividend for 60 consecutive years.
Genuine Parts Company beats LKQ Corporation on 9 of the 17 factors compared between the two stocks.
Genuine Parts Company Company Profile
Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The Company’s segments include Automotive, Industrial, Office Products Group, Electrical/Electronic Materials and Other. The automotive segment distributes replacement parts for all makes and models of automobiles, trucks and other vehicles. The industrial segment distributes a range of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies. The office products segment distributes a range of office products, computer supplies, office furniture, and business electronics. The electrical/electronic materials segment distributes a range of electrical/electronic materials, including insulating and conductive materials for use in electronic and electrical apparatus.
LKQ Corporation Company Profile
LKQ Corporation (LKQ) is a distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories, and automotive glass products. The Company’s segments include Wholesale-North America; Europe; Specialty, and Self Service. It offers its customers a range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. It distributes a range of products to collision and mechanical repair shops, including aftermarket collision and mechanical products, recycled collision and mechanical products, refurbished collision products, such as wheels, bumper covers and lights, and re-manufactured engines. It also has operations in North America, Europe and Taiwan. It is a provider of alternative vehicle collision replacement products and alternative vehicle mechanical replacement products.
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