LKQ (NASDAQ: LKQX) and Genuine Parts Company (NYSE:GPC) are both cyclical consumer goods & services companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitabiliy, analyst recommendations and dividends.

Analyst Recommendations

This is a summary of recent ratings and price targets for LKQ and Genuine Parts Company, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LKQ 0 0 0 0 N/A
Genuine Parts Company 0 7 1 0 2.13

Genuine Parts Company has a consensus price target of $100.75, indicating a potential upside of 10.90%. Given Genuine Parts Company’s higher possible upside, analysts plainly believe Genuine Parts Company is more favorable than LKQ.

Profitability

This table compares LKQ and Genuine Parts Company’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LKQ 6.00% 16.02% 6.87%
Genuine Parts Company 4.44% 21.17% 7.79%

Dividends

Genuine Parts Company pays an annual dividend of $2.70 per share and has a dividend yield of 3.0%. LKQ does not pay a dividend. Genuine Parts Company pays out 58.4% of its earnings in the form of a dividend. Genuine Parts Company has increased its dividend for 60 consecutive years.

Valuation & Earnings

This table compares LKQ and Genuine Parts Company’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LKQ N/A N/A N/A N/A N/A
Genuine Parts Company $15.53 billion 0.86 $1.22 billion $4.62 19.66

Genuine Parts Company has higher revenue and earnings than LKQ.

Insider and Institutional Ownership

73.9% of Genuine Parts Company shares are held by institutional investors. 3.1% of Genuine Parts Company shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Genuine Parts Company beats LKQ on 9 of the 11 factors compared between the two stocks.

LKQ Company Profile

LKQ Corporation (LKQ) is a distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, as well as specialty vehicle products and accessories, and automotive glass products. The Company’s segments include Wholesale-North America; Europe; Specialty, and Self Service. It offers its customers a range of replacement systems, components, equipment and parts to repair and accessorize automobiles, trucks, and recreational and performance vehicles. It distributes a range of products to collision and mechanical repair shops, including aftermarket collision and mechanical products, recycled collision and mechanical products, refurbished collision products, such as wheels, bumper covers and lights, and re-manufactured engines. It also has operations in North America, Europe and Taiwan. It is a provider of alternative vehicle collision replacement products and alternative vehicle mechanical replacement products.

Genuine Parts Company Company Profile

Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The Company’s segments include Automotive, Industrial, Office Products Group, Electrical/Electronic Materials and Other. The automotive segment distributes replacement parts for all makes and models of automobiles, trucks and other vehicles. The industrial segment distributes a range of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies. The office products segment distributes a range of office products, computer supplies, office furniture, and business electronics. The electrical/electronic materials segment distributes a range of electrical/electronic materials, including insulating and conductive materials for use in electronic and electrical apparatus.

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