Brembo (OTCMKTS:BRBOF – Get Free Report) and Motorcar Parts of America (NASDAQ:MPAA – Get Free Report) are both consumer discretionary companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, profitability, earnings, analyst recommendations, risk and valuation.
Insider & Institutional Ownership
21.4% of Brembo shares are held by institutional investors. Comparatively, 83.5% of Motorcar Parts of America shares are held by institutional investors. 8.4% of Motorcar Parts of America shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Brembo and Motorcar Parts of America”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Brembo | N/A | N/A | N/A | $1.84 | 5.98 |
| Motorcar Parts of America | $789.81 million | 0.28 | $12.39 million | ($0.31) | -37.42 |
Motorcar Parts of America has higher revenue and earnings than Brembo. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Brembo, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Brembo and Motorcar Parts of America, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Brembo | 0 | 1 | 0 | 0 | 2.00 |
| Motorcar Parts of America | 1 | 1 | 2 | 0 | 2.25 |
Motorcar Parts of America has a consensus target price of $18.00, suggesting a potential upside of 55.17%. Given Motorcar Parts of America’s stronger consensus rating and higher probable upside, analysts clearly believe Motorcar Parts of America is more favorable than Brembo.
Profitability
This table compares Brembo and Motorcar Parts of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Brembo | N/A | N/A | N/A |
| Motorcar Parts of America | -0.53% | -0.57% | -0.15% |
Summary
Motorcar Parts of America beats Brembo on 6 of the 11 factors compared between the two stocks.
About Brembo
Brembo S.p.A., together with its subsidiaries, designs, develops, produces, and sells braking systems and components for cars, motorbikes, and industrial vehicles and machinery. It operates through Discs Systems Motorbikes; and Aftermarket Performance Group segments. The company offers various products for car and commercial vehicle applications, including brake discs, brake calipers, side-wheel modules, and braking systems, as well as integrated engineering services for light commercial and heavy industrial vehicles, motorbikes, and racing competitions. It also provides brake master cylinders, light-alloy wheels, brake hoses, braking systems, pads, drums, brake shoes, drum-brake kits, and hydraulic components. In addition, the company offers braking systems for race cars and motorbikes under the Brembo Racing brand; braking systems and clutches for race cars under the AP Racing brand name; and magnesium and aluminum wheels for racing motorbikes under the Marchesini brand. It operates in Italy, Germany, France, the United Kingdom, other European countries, India, China, Japan, other Asian countries, Argentina, Brazil, the United States, Mexico, Canada, and internationally. Brembo S.p.A. was founded in 1961 and is headquartered in Stezzano, Italy. Brembo S.p.A. is a subsidiary of Nuova FourB S.r.l.
About Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.
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