Critical Contrast: Genuine Parts Company (GPC) versus LKQ (NASDAQ:LKQX)

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

Dividends

Genuine Parts Company pays an annual dividend of $2.70 per share and has a dividend yield of 3.2%. 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.

Institutional & Insider Ownership

73.3% of Genuine Parts Company shares are owned by institutional investors. 3.1% of Genuine Parts Company 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.

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%

Valuation and Earnings

This table compares LKQ and Genuine Parts Company’s top-line 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 0.79 $1.22 billion $4.62 18.04

Genuine Parts Company has higher revenue and earnings than LKQ.

Analyst Ratings

This is a breakdown of recent ratings and target prices 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 1 5 1 0 2.00

Genuine Parts Company has a consensus price target of $97.86, indicating a potential upside of 17.41%. Given Genuine Parts Company’s higher probable upside, analysts plainly…

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