Motorcar Parts of America (NASDAQ:MPAA – Get Free Report) and Worksport (NASDAQ:WKSP – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.
Insider & Institutional Ownership
83.5% of Motorcar Parts of America shares are held by institutional investors. Comparatively, 16.1% of Worksport shares are held by institutional investors. 6.7% of Motorcar Parts of America shares are held by company insiders. Comparatively, 9.4% of Worksport shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings for Motorcar Parts of America and Worksport, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Motorcar Parts of America | 0 | 0 | 0 | 0 | N/A |
| Worksport | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Motorcar Parts of America and Worksport’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Motorcar Parts of America | -9.06% | -0.93% | -0.26% |
| Worksport | -410.82% | -84.45% | -58.39% |
Volatility and Risk
Motorcar Parts of America has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Worksport has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Valuation & Earnings
This table compares Motorcar Parts of America and Worksport”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Motorcar Parts of America | $717.68 million | 0.14 | -$49.24 million | ($3.45) | -1.51 |
| Worksport | $3.73 million | 5.79 | -$14.93 million | ($0.75) | -0.93 |
Worksport has lower revenue, but higher earnings than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Worksport, indicating that it is currently the more affordable of the two stocks.
Summary
Motorcar Parts of America beats Worksport on 6 of the 11 factors compared between the two stocks.
About Motorcar Parts of America
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.
About Worksport
Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.
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