Financial Review: Motorcar Parts of America (MPAA) & Delphi Automotive (APTV)

Motorcar Parts of America (NASDAQ: MPAA) and Delphi Automotive (NYSE:APTV) are both auto, truck & motorcycle parts – nec companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, risk, earnings and dividends.

Insider & Institutional Ownership

90.8% of Delphi Automotive shares are held by institutional investors. 4.2% of Motorcar Parts of America shares are held by company insiders. Comparatively, 0.3% of Delphi Automotive shares are held by company 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 Recommendations

This is a breakdown of recent ratings and recommmendations for Motorcar Parts of America and Delphi Automotive, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Motorcar Parts of America 0 0 3 0 3.00
Delphi Automotive 1 3 14 0 2.72

Motorcar Parts of America currently has a consensus price target of $36.67, suggesting a potential upside of 47.61%. Delphi Automotive has a consensus price target of $86.59, suggesting a potential upside of 2.12%. Given Motorcar Parts of America’s stronger consensus rating and higher possible upside, analysts clearly believe Motorcar Parts of America is more favorable than Delphi Automotive.

Dividends

Delphi Automotive pays an annual dividend of $1.49 per share and has a dividend yield of 1.8%. Motorcar Parts of America does not pay a dividend. Delphi Automotive pays out 29.0% of its earnings in the form of a dividend.

Profitability

This table compares Motorcar Parts of America and Delphi Automotive’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Motorcar Parts of America 8.03% 15.15% 8.68%
Delphi Automotive 8.00% 57.92% 14.04%

Valuation and Earnings

This table compares Motorcar Parts of America and Delphi Automotive’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Motorcar Parts of America $421.25 million 1.12 $37.57 million $1.79 13.88
Delphi Automotive $16.66 billion 1.35 $1.26 billion $5.13 16.53

Delphi Automotive has higher revenue and earnings than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Delphi Automotive, indicating that it is currently the more affordable of the two stocks.

Summary

Delphi Automotive beats Motorcar Parts of America on 10 of the 15 factors compared between the two stocks.

Motorcar Parts of America Company Profile

Motorcar Parts of America, Inc. is a manufacturer, remanufacturer and distributor of automotive aftermarket parts, including alternators, starters, wheel hub assembly, brake master cylinders, brake power boosters and turbochargers utilized in imported and domestic passenger vehicles, light trucks and heavy-duty applications. The Company sells its products in North America to auto parts retail and traditional warehouse chains and to automobile manufacturers for both their aftermarket programs and their warranty replacement programs (OES). It recycles materials, including metal from the used cores and corrugated packaging. The Company carries over 13,000 stock keeping units (SKUs) for automotive parts that are sold under its customers’ recognized private label brand names and its Quality-Built, Pure Energy, Xtreme, Reliance and other brand names. It sells its products to automotive retail outlets and the professional repair market throughout the United States and Canada.

Delphi Automotive Company Profile

Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.

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