Head-To-Head Review: China MeiDong Auto (OTCMKTS:CMEIF) versus Driven Brands (NASDAQ:DRVN)

Driven Brands (NASDAQ:DRVN) and China MeiDong Auto (OTCMKTS:CMEIF) are both consumer cyclical companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$2.32 billion	1.04	-$744.96 million	($4.66)	-3.15
China MeiDong Auto	N/A	N/A	N/A	N/A	N/A

China MeiDong Auto has lower revenue, but higher earnings than Driven Brands.

Insider and Institutional Ownership

77.1% of Driven Brands shares are held by institutional investors. 2.6% of Driven Brands shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Driven Brands	-33.56%	15.12%	2.34%
China MeiDong Auto	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent ratings for Driven Brands and China MeiDong Auto, as provided by MarketBeat.

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

Driven Brands currently has a consensus target price of $16.95, indicating a potential upside of 15.54%. Given Driven Brands’ higher probable upside, analysts plainly believe Driven Brands is more favorable than China MeiDong Auto.

Summary

Driven Brands beats China MeiDong Auto on 8 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 China MeiDong Auto

China MeiDong Auto Holdings Limited, an investment holding company, operates as an automobile dealer in the People's Republic of China. The company is involved in the sale of new passenger cars and spare parts; and provision of service and survey. It also provides after-sales services, such as auto registration, insurance, auto parts, repair and replacement, sales and maintenance of automotive supplies, etc.; financing referral solutions; and other value added services. In addition, the company engages in the trading of used vehicles and property management. It operates self-operated stores in Beijing, Hebei, Hubei, Hunan, Jiangxi, Fujian, Guangdong, Gansu, and Anhui provinces. The company was founded in 2003 and is headquartered in Dongguan, the People's Republic of China. China MeiDong Auto Holdings Limited is a subsidiary of Apex Sail Limited.