Financial Contrast: Monro Muffler Brake (MNRO) and Pep Boys - Manny Moe & Jack (PBY)

Pep Boys – Manny Moe & Jack (NYSE: PBY) and Monro Muffler Brake (NASDAQ:MNRO) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitabiliy and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Pep Boys – Manny Moe & Jack and Monro Muffler Brake, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pep Boys – Manny Moe & Jack	0	0	0	0	N/A
Monro Muffler Brake	0	4	4	0	2.50

Monro Muffler Brake has a consensus target price of $63.33, indicating a potential upside of 33.61%. Given Monro Muffler Brake’s higher probable upside, analysts plainly believe Monro Muffler Brake is more favorable than Pep Boys – Manny Moe & Jack.

Dividends

Monro Muffler Brake pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Pep Boys – Manny Moe & Jack does not pay a dividend. Monro Muffler Brake pays out 38.3% of its earnings in the form of a dividend. Monro Muffler Brake has raised its dividend for 8 consecutive years.

Profitability

This table compares Pep Boys – Manny Moe & Jack and Monro Muffler Brake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pep Boys – Manny Moe & Jack	0.21%	0.79%	0.29%
Monro Muffler Brake	5.84%	10.90%	5.37%

Valuation and Earnings

This table compares Pep Boys – Manny Moe & Jack and Monro Muffler Brake’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Pep Boys – Manny Moe & Jack	N/A	N/A	N/A	N/A	N/A
Monro Muffler Brake	$1.06 billion	1.49	$164.81 million	$1.88	25.21

Monro Muffler Brake has higher revenue and earnings than Pep Boys – Manny Moe & Jack.

Summary

Monro Muffler Brake beats Pep Boys – Manny Moe & Jack on 8 of the 9 factors compared between the two stocks.

Pep Boys – Manny Moe & Jack Company Profile

Pep Boys-Manny, Moe & Jack is a service and automotive aftermarket company. The Company’s stores are organized into a hub and spoke network, including supercenters and service and tire centers. Supercenters average approximately 20,000 square feet and combine do-it-for-me (DIFM) service labor, installed merchandise and tire offerings with do-it-yourself (DIY) parts and accessories. The Company’s Supercenters also have a commercial sales program that provides prompt delivery of parts, tires and equipment to automotive repair shops and dealers. Service and Tire centers, which average approximately 6,000 square feet, provide DIFM services in neighborhood locations that are located where the customers live or work. Service and Tire Centers are designed to capture market share and leverage the Company’s existing Supercenters and support infrastructure. The Company also operates DIY only Pep Express stores.

Monro Muffler Brake Company Profile

Monro Muffler Brake, Inc. is engaged in the provision of automotive undercar repair and tire services in the United States. The Company provides a range of services on passenger cars, light trucks and vans for brakes; mufflers and exhaust systems, and steering, drive train, suspension and wheel alignment. It also offers tires and routine maintenance services, which include state inspections. It offers repair and replacement of parts. Its store provides a range of undercar repair services for brakes, steering, mufflers and exhaust systems, suspension and wheel alignment, as well as tire replacement and service. It also offers scheduled maintenance services in its stores where services are packaged and offered to consumers based upon the year, make, model and mileage of each specific vehicle. Its maintenance services include oil change services, heating and cooling system flush and fill service, belt installation, fuel system service and a transmission flush and fill service.