CarParts.com (NASDAQ:PRTS – Get Free Report) and Hennes & Mauritz (OTCMKTS:HNNMY – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.
Insider & Institutional Ownership
75.3% of CarParts.com shares are owned by institutional investors. Comparatively, 0.0% of Hennes & Mauritz shares are owned by institutional investors. 6.6% of CarParts.com shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
CarParts.com has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, Hennes & Mauritz has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| Hennes & Mauritz | 3 | 4 | 0 | 0 | 1.57 |
CarParts.com presently has a consensus target price of $6.00, indicating a potential downside of 30.56%. Given CarParts.com’s higher probable upside, analysts plainly believe CarParts.com is more favorable than Hennes & Mauritz.
Profitability
This table compares CarParts.com and Hennes & Mauritz’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -5.35% | -47.19% | -14.52% |
| Hennes & Mauritz | 5.94% | 33.70% | 7.80% |
Valuation & Earnings
This table compares CarParts.com and Hennes & Mauritz”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $547.53 million | 0.13 | -$50.44 million | ($4.33) | -2.00 |
| Hennes & Mauritz | $23.01 billion | 1.00 | $1.23 billion | $0.17 | 19.29 |
Hennes & Mauritz has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Hennes & Mauritz, indicating that it is currently the more affordable of the two stocks.
Summary
Hennes & Mauritz beats CarParts.com on 10 of the 13 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 Hennes & Mauritz
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H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.
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