CarParts.com (NASDAQ:PRTS – Get Free Report) and Allison Transmission (NYSE:ALSN – Get Free Report) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.
Institutional & Insider Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 96.9% of Allison Transmission shares are held by institutional investors. 9.7% of CarParts.com shares are held by company insiders. Comparatively, 1.2% of Allison Transmission shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares CarParts.com and Allison Transmission’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% |
| Allison Transmission | 22.78% | 40.46% | 12.93% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| Allison Transmission | 2 | 7 | 0 | 1 | 2.00 |
CarParts.com currently has a consensus price target of $1.85, suggesting a potential upside of 377.05%. Allison Transmission has a consensus price target of $93.88, suggesting a potential downside of 5.65%. Given CarParts.com’s higher probable upside, research analysts clearly believe CarParts.com is more favorable than Allison Transmission.
Volatility & Risk
CarParts.com has a beta of 0.83, meaning that its stock price is 17% less volatile than the S&P 500. Comparatively, Allison Transmission has a beta of 0.99, meaning that its stock price is 1% less volatile than the S&P 500.
Earnings and Valuation
This table compares CarParts.com and Allison Transmission”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $588.85 million | 0.05 | -$40.60 million | ($0.96) | -0.40 |
| Allison Transmission | $3.23 billion | 2.57 | $731.00 million | $8.16 | 12.19 |
Allison Transmission has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Allison Transmission, indicating that it is currently the more affordable of the two stocks.
Summary
Allison Transmission beats CarParts.com on 11 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 Allison Transmission
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems. The company offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. It provides its transmissions and electric propulsion solutions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. The company also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its solutions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. It serves customers through an independent network of approximately 1,600 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc. Allison Transmission Holdings, Inc. was founded in 1915 and is headquartered in Indianapolis, Indiana.
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