Comparing Holley (NYSE:HLLY) & Denso (OTCMKTS:DNZOY)

Denso (OTCMKTS:DNZOY) and Holley (NYSE:HLLY) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, profitability, institutional ownership, earnings, valuation, risk and analyst recommendations.

Earnings & Valuation

This table compares Denso and Holley”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Denso	$50.09 billion	0.68	$2.93 billion	$1.03	11.35
Holley	$613.51 million	0.52	$19.17 million	$0.08	32.69

Denso has higher revenue and earnings than Holley. Denso is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Denso has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Holley has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500.

Profitability

This table compares Denso and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Denso	5.57%	7.74%	4.89%
Holley	1.68%	8.41%	3.23%

Insider & Institutional Ownership

39.7% of Holley shares are held by institutional investors. 4.9% of Holley shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings for Denso and Holley, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Denso	0	3	0	0	2.00
Holley	1	3	3	0	2.29

Holley has a consensus price target of $4.90, indicating a potential upside of 87.38%. Given Holley’s stronger consensus rating and higher probable upside, analysts clearly believe Holley is more favorable than Denso.

Summary

Holley beats Denso on 8 of the 14 factors compared between the two stocks.

About Denso

DENSO Corporation engages in the manufacture and sale of automotive parts in Japan, rest of Asia, North America, Europe, and internationally. The company offers air-conditioning systems, including thermal management heat pump system, heat pump air-conditioning systems, refrigerant products, personal heating and cooling devices, air quality system, heat exchangers, bus air-conditioning systems, automotive freezers, and cooling products, as well as heating, ventilation, and air-conditioning units. It also provides gasoline, diesel, hybrid, electric vehicle, and fuel cell vehicle power-train systems; and safety and cockpit systems, such as driving environment recognition, vehicle dynamic control, collision safety, visibility support, cockpit information, and information security systems, as well as other products. In addition, the company offers automotive service parts and accessories, comprising spark plugs, oil and cabin air filters, wiper blades, air filter elements, starters, alternators, compressors, oxygen sensors, fuel pumps, air conditioner service parts, radiators, condensers, ion generators, air conditioners for busses and construction vehicles, and truck refrigeration products, as well as refrigerant recovery, recycling, and charging machines; and repair and support products and services. Further, it provides industrial solutions for factories in automotive parts production; agricultural solutions, including Profarm Controller, a climate control system for greenhouse and horticulture solutions; and household air conditioning equipment and industrial systems. The company was incorporated in 1949 and is headquartered in Kariya, Japan.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.