Financial Analysis: LKQ (LKQ) and China Auto Logistics (CALI)

LKQ (NASDAQ:LKQ) and China Auto Logistics (NASDAQ:CALI) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Profitability

This table compares LKQ and China Auto Logistics’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LKQ 5.01% 14.55% 6.32%
China Auto Logistics N/A N/A N/A

Institutional & Insider Ownership

90.1% of LKQ shares are held by institutional investors. Comparatively, 1.4% of China Auto Logistics shares are held by institutional investors. 0.8% of LKQ shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares LKQ and China Auto Logistics’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LKQ $9.74 billion 0.87 $533.74 million $1.88 14.18
China Auto Logistics N/A N/A N/A N/A N/A

LKQ has higher revenue and earnings than China Auto Logistics.

Analyst Ratings

This is a summary of current ratings and target prices for LKQ and China Auto Logistics, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LKQ 0 1 10 0 2.91
China Auto Logistics 0 0 0 0 N/A

LKQ currently has a consensus price target of $44.14, indicating a potential upside of 65.58%. Given LKQ’s higher possible upside, equities analysts clearly believe LKQ is more favorable than China Auto Logistics.

Summary

LKQ beats China Auto Logistics on 8 of the 8 factors compared between the two stocks.

LKQ Company Profile

LKQ Corporation, together with its subsidiaries, distributes replacement parts, components, and systems used in the repair and maintenance of vehicles in North America, Europe, and Taiwan. It operates in three segments: North America, Europe, and Specialty. The company distributes bumper covers, automotive body panels, and lights, as well as automotive glass products, such as windshields; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. It also operates self service retail operations under the LKQ Pick Your Part name. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, cargo management products, wheels, tires, and suspension products. Further, it designs, manufactures, and markets vehicle equipment and accessories. It primarily serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. LKQ Corporation was founded in 1998 and is headquartered in Chicago, Illinois.

China Auto Logistics Company Profile

China Auto Logistics Inc., together with its subsidiaries, sells and trades in imported automobiles in the People's Republic of China. It operates through Sales of Automobiles, Financing Services, and Other Services segments. The company also offers financing services, including letter of credit issuance, purchase deposit financing, and import duty advances services, as well as automobile value-added services comprising assistance related to customs clearance, storage, and delivery services. In addition, it provides Web-based advertising services through its Websites, such as at188.com that provides sales and trading information related to imported automobiles, as well as parts and components information; and at160.com, which offers real-time price comparison, and sales and trading information. It primarily serves authorized dealers and agents, free traders or wholesalers, and individual customers. The company is headquartered in Tianjin, the People's Republic of China.

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