Motorcar Parts of America (NASDAQ:MPAA) vs. Cooper-Standard Holdings (CPS) Head to Head Comparison

Motorcar Parts of America (NASDAQ: MPAA) and Cooper-Standard Holdings (NYSE:CPS) are both small-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, earnings, profitabiliy, risk and valuation.

Profitability

This table compares Motorcar Parts of America and Cooper-Standard Holdings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Motorcar Parts of America	8.92%	18.59%	9.92%
Cooper-Standard Holdings	4.22%	26.90%	8.12%

Volatility & Risk

Motorcar Parts of America has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500. Comparatively, Cooper-Standard Holdings has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.

Institutional and Insider Ownership

95.0% of Cooper-Standard Holdings shares are owned by institutional investors. 4.4% of Motorcar Parts of America shares are owned by insiders. Comparatively, 3.9% of Cooper-Standard Holdings shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Motorcar Parts of America and Cooper-Standard Holdings’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	EBITDA	Earnings Per Share	Price/Earnings Ratio
Motorcar Parts of America	$421.25 million	1.16	$75.53 million	$1.93	13.62
Cooper-Standard Holdings	$3.51 billion	0.52	$421.57 million	$7.93	12.93

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

Analyst Ratings

This is a summary of recent recommendations for Motorcar Parts of America and Cooper-Standard Holdings, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Motorcar Parts of America	0	0	3	0	3.00
Cooper-Standard Holdings	1	1	4	0	2.50

Motorcar Parts of America currently has a consensus price target of $36.33, indicating a potential upside of 38.25%. Cooper-Standard Holdings has a consensus price target of $108.33, indicating a potential upside of 5.68%. Given Motorcar Parts of America’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Motorcar Parts of America is more favorable than Cooper-Standard Holdings.

Summary

Motorcar Parts of America beats Cooper-Standard Holdings on 8 of the 14 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.

Cooper-Standard Holdings Company Profile

Cooper-Standard Holdings Inc. is a holding company. The Company designs, manufactures and sells sealing, fuel and brake delivery, fluid transfer and anti-vibration systems for use in passenger vehicles and light trucks manufactured by global original equipment manufacturers (OEMs). The Company operates through four segments: North America, Europe, Asia Pacific and South America. The Company’s products are used in passenger vehicles and light trucks. As of December 31, 2016, the Company’s operations were conducted through 123 leased and joint venture facilities in 20 countries (North America: Canada, Mexico and the United States; Asia Pacific: China, India, Japan, South Korea and Thailand; Europe: Czech Republic, France, Germany, Italy, the Netherlands, Poland, Romania, Serbia, Spain, Sweden and the United Kingdom, and South America: Brazil), of which 90 are manufacturing facilities and 33 have design, engineering, administrative or logistics designations.