CarParts.com (NASDAQ:PRTS – Get Free Report) and Gentherm (NASDAQ:THRM – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Earnings and Valuation
This table compares CarParts.com and Gentherm”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $588.85 million | 0.07 | -$40.60 million | ($0.94) | -0.69 |
| Gentherm | $1.45 billion | 0.78 | $64.95 million | $1.02 | 36.43 |
Institutional & Insider Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 97.1% of Gentherm shares are held by institutional investors. 9.7% of CarParts.com shares are held by insiders. Comparatively, 1.4% of Gentherm shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Ratings
This is a summary of recent ratings and target prices for CarParts.com and Gentherm, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 1 | 0 | 2.00 |
| Gentherm | 1 | 2 | 2 | 1 | 2.50 |
CarParts.com currently has a consensus target price of $1.85, indicating a potential upside of 184.40%. Gentherm has a consensus target price of $47.67, indicating a potential upside of 28.27%. Given CarParts.com’s higher possible upside, research analysts clearly believe CarParts.com is more favorable than Gentherm.
Profitability
This table compares CarParts.com and Gentherm’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -9.25% | -67.30% | -25.32% |
| Gentherm | 2.18% | 9.90% | 4.95% |
Volatility and Risk
CarParts.com has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.39, suggesting that its stock price is 39% more volatile than the S&P 500.
Summary
Gentherm beats CarParts.com on 13 of the 15 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 Gentherm
Gentherm Incorporated designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies in the United States and internationally. The company operates in two segments, Automotive and Medical. The Automotive segment offers climate comfort systems, which include seat heaters, blowers, and thermoelectric devices for variable temperature climate control seats and steering wheel heaters that are designed to provide thermal comfort to automobile passengers; integrated electronic components, such as electronic control units; and other climate comfort systems, including neck and shoulder conditioners and climate control system products for door panels, armrests, cupholders, and storage bins. It also provides battery performance solutions comprising cell connecting devices and battery cable technologies used for various types of automotive batteries; thermal management products for heating and cooling; and automotive electronic and software systems, including electronic control units for climate comfort systems, as well as for memory seat modules and other devices. In addition, it offers lumbar and massage comfort solutions, such as lumbar support, side bolster adjustment, multi-contour seats, and massage systems; automotive cable systems, including ready-made individual cables, and ready-to-install cable networks; and valve systems products consisting of applications that offer solutions in fuel management, and other valves for brake and engine systems. This segment serves light vehicle original equipment manufacturers and tier 1s, such as automotive seat manufacturers, and aftermarket seat distributors and installers. The Medical segment offers patient temperature management systems. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was incorporated in 1991 and is headquartered in Northville, Michigan.
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