Head to Head Survey: Zhongsheng Group (OTCMKTS:ZSHGY) versus Driven Brands (NASDAQ:DRVN)

Zhongsheng Group (OTCMKTS:ZSHGY) and Driven Brands (NASDAQ:DRVN) are both consumer cyclical companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, earnings, valuation and dividends.

Insider and Institutional Ownership

0.0% of Zhongsheng Group shares are owned by institutional investors. Comparatively, 77.1% of Driven Brands shares are owned by institutional investors. 2.6% of Driven Brands shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Zhongsheng Group and Driven Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zhongsheng Group	N/A	N/A	N/A	$5.36	2.87
Driven Brands	$2.32 billion	1.04	-$744.96 million	($4.66)	-3.15

Zhongsheng Group has higher earnings, but lower revenue than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than Zhongsheng Group, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

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

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

Driven Brands has a consensus price target of $16.95, indicating a potential upside of 15.54%. Given Driven Brands’ higher possible upside, analysts plainly believe Driven Brands is more favorable than Zhongsheng Group.

Profitability

This table compares Zhongsheng Group and Driven Brands’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Zhongsheng Group	N/A	N/A	N/A
Driven Brands	-33.56%	15.12%	2.34%

Summary

Driven Brands beats Zhongsheng Group on 8 of the 11 factors compared between the two stocks.

About Zhongsheng Group

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in the People's Republic of China. The company operates 4S dealerships for various automobile brands consisting of luxury automobile brands, including Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, and Volvo; and mid-to-high end automobile brands, such as Toyota, Honda, and Nissan. It also provides spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services. The company was founded in 1998 and is headquartered in Dalian, the People's Republic of China.

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.