Critical Review: Driven Brands (NASDAQ:DRVN) versus Inchcape (OTCMKTS:INCPY)

Driven Brands (NASDAQ:DRVN) and Inchcape (OTCMKTS:INCPY) are both auto/tires/trucks companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, dividends, valuation, risk, earnings, profitability and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Driven Brands	0.27%	15.03%	2.35%
Inchcape	N/A	N/A	N/A

Valuation & Earnings

This table compares Driven Brands and Inchcape”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$2.30 billion	1.08	-$744.96 million	$0.04	380.75
Inchcape	N/A	N/A	N/A	N/A	N/A

Inchcape has lower revenue, but higher earnings than Driven Brands.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Driven Brands and Inchcape, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	4	6	1	2.73
Inchcape	0	0	0	0	N/A

Driven Brands presently has a consensus target price of $17.45, suggesting a potential upside of 14.58%. Given Driven Brands’ higher probable upside, research analysts clearly believe Driven Brands is more favorable than Inchcape.

Insider and Institutional Ownership

77.1% of Driven Brands shares are owned by institutional investors. 2.3% of Driven Brands shares are owned by company 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.

Summary

Driven Brands beats Inchcape on 9 of the 9 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 Inchcape

Inchcape plc operates as an automotive distributor and retailer. The company engages in the distribution, sales, and marketing of new and used cars, and parts. It also provides aftersales service and body shop repairs; and finance and insurance products and services. The company operates in the Asia Pacific, the United Kingdom, rest of Europe, the Americas, and Africa. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.