Best Buy (NYSE:BBY) & Driven Brands (NASDAQ:DRVN) Head-To-Head Analysis

Driven Brands (NASDAQ:DRVN) and Best Buy (NYSE:BBY) are both consumer discretionary companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Profitability

This table compares Driven Brands and Best Buy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	8.61%	24.13%	5.03%
Best Buy	3.01%	48.14%	9.16%

Earnings & Valuation

This table compares Driven Brands and Best Buy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$1.86 billion	1.07	$140.16 million	$1.04	11.61
Best Buy	$41.69 billion	0.46	$1.07 billion	$6.01	15.35

Best Buy has higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than Best Buy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Driven Brands and Best Buy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	1	7	6	2	2.56
Best Buy	2	13	6	0	2.19

Driven Brands presently has a consensus target price of $16.43, indicating a potential upside of 36.14%. Best Buy has a consensus target price of $85.40, indicating a potential downside of 7.44%. Given Driven Brands’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Driven Brands is more favorable than Best Buy.

Volatility & Risk

Driven Brands has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, Best Buy has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500.

Institutional & Insider Ownership

77.1% of Driven Brands shares are held by institutional investors. Comparatively, 81.0% of Best Buy shares are held by institutional investors. 4.4% of Driven Brands shares are held by company insiders. Comparatively, 0.5% of Best Buy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Best Buy beats Driven Brands on 8 of the 14 factors compared between the two stocks.

About Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.

About Best Buy

Best Buy Co., Inc. engages in the retail of technology products in the United States, Canada, and international. Its stores provide computing and mobile phone products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; smartwatches; and consumer electronics consisting of digital imaging, health and fitness products, portable audio comprising headphones and portable speakers, and smart home products, as well as home theaters, which includes home theater accessories, soundbars, and televisions. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, vacuums, and personal care; entertainment products consisting of drones, peripherals, movies, and toys, as well as hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides delivery, installation, memberships, repair, set-up, technical support, health-related, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, Buy Mobile, CST, Current Health, Geek Squad, Lively, Magnolia, Pacific Kitchen, Home, TechLiquidators, and Yardbird brands, as well as domain names comprising bestbuy.com, currenthealth.com, lively.com, techliquidators.com, yardbird.com, and bestbuy.ca. The company was formerly known as Sound of Music, Inc. Best Buy Co., Inc. was incorporated in 1966 and is headquartered in Richfield, Minnesota.