Analyzing Driven Brands (DRVN) and Its Peers

Driven Brands (NASDAQ:DRVNGet Free Report) is one of 168 publicly-traded companies in the “Diversified Consumer Services” industry, but how does it compare to its rivals? We will compare Driven Brands to similar companies based on the strength of its risk, analyst recommendations, valuation, earnings, profitability, dividends and institutional ownership.

Earnings and Valuation

This table compares Driven Brands and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Driven Brands $1.86 billion $140.16 million 12.37
Driven Brands Competitors $3.21 billion $218.79 million 14.51

Driven Brands’ rivals have higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Driven Brands has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Driven Brands’ rivals have a beta of 0.48, indicating that their average stock price is 52% less volatile than the S&P 500.

Institutional & Insider Ownership

77.1% of Driven Brands shares are held by institutional investors. Comparatively, 48.7% of shares of all “Diversified Consumer Services” companies are held by institutional investors. 4.4% of Driven Brands shares are held by company insiders. Comparatively, 19.9% of shares of all “Diversified Consumer Services” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Driven Brands and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Driven Brands 1 6 5 2 2.57
Driven Brands Competitors 1380 3373 5261 188 2.42

Driven Brands currently has a consensus price target of $16.77, suggesting a potential upside of 30.44%. As a group, “Diversified Consumer Services” companies have a potential upside of 56.47%. Given Driven Brands’ rivals higher probable upside, analysts plainly believe Driven Brands has less favorable growth aspects than its rivals.

Profitability

This table compares Driven Brands and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Driven Brands 8.61% 24.13% 5.03%
Driven Brands Competitors -2.01% -37.80% 3.06%

Summary

Driven Brands beats its rivals on 7 of the 13 factors compared.

About Driven Brands

(Get Free Report)

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.

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