Federal-Mogul (FDML) and Motorcar Parts of America (MPAA) Head-To-Head Contrast

Federal-Mogul (NASDAQ: FDML) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap cyclical consumer goods & services companies, but which is the better business? We will compare the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares Federal-Mogul and Motorcar Parts of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Federal-Mogul 0.31% 16.56% 2.17%
Motorcar Parts of America 4.02% 13.00% 7.56%

Analyst Ratings

This is a summary of recent recommendations and price targets for Federal-Mogul and Motorcar Parts of America, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Federal-Mogul 0 0 0 0 N/A
Motorcar Parts of America 0 0 3 0 3.00

Motorcar Parts of America has a consensus price target of $34.67, indicating a potential upside of 59.17%. Given Motorcar Parts of America’s higher possible upside, analysts plainly believe Motorcar Parts of America is more favorable than Federal-Mogul.

Insider and Institutional Ownership

98.5% of Federal-Mogul shares are owned by institutional investors. 82.1% of Federal-Mogul shares are owned by company insiders. Comparatively, 4.2% of Motorcar Parts of America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Federal-Mogul and Motorcar Parts of America’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Federal-Mogul N/A N/A N/A $0.49 20.37
Motorcar Parts of America $421.25 million 1.00 $37.57 million $0.86 25.58

Motorcar Parts of America has higher revenue and earnings than Federal-Mogul. Federal-Mogul 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.

Summary

Motorcar Parts of America beats Federal-Mogul on 6 of the 10 factors compared between the two stocks.

Federal-Mogul Company Profile

Federal-Mogul Holdings Corp, formerly Federal-Mogul Corporation, is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company serves original equipment manufacturers (OEM) and servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. As of December 31, 2012, the Company had OEM products included on more than 300 global vehicle platforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. The Company offers brands, OE replacement and premium products for all aftermarket customers.

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.

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