Genuine Parts (NYSE:GPC – Get Free Report) and Alliance Entertainment (NASDAQ:AENT – Get Free Report) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Profitability
This table compares Genuine Parts and Alliance Entertainment’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Genuine Parts | 0.13% | 22.59% | 4.94% |
| Alliance Entertainment | 2.01% | 19.91% | 5.71% |
Earnings and Valuation
This table compares Genuine Parts and Alliance Entertainment”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Genuine Parts | $25.07 billion | 0.75 | $65.94 million | $0.25 | 546.24 |
| Alliance Entertainment | $1.06 billion | 0.24 | $15.08 million | $0.44 | 11.43 |
Genuine Parts has higher revenue and earnings than Alliance Entertainment. Alliance Entertainment is trading at a lower price-to-earnings ratio than Genuine Parts, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Genuine Parts and Alliance Entertainment, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Genuine Parts | 0 | 5 | 3 | 1 | 2.56 |
| Alliance Entertainment | 0 | 2 | 1 | 0 | 2.33 |
Genuine Parts currently has a consensus target price of $147.86, indicating a potential upside of 8.27%. Alliance Entertainment has a consensus target price of $10.00, indicating a potential upside of 98.81%. Given Alliance Entertainment’s higher probable upside, analysts clearly believe Alliance Entertainment is more favorable than Genuine Parts.
Institutional and Insider Ownership
78.8% of Genuine Parts shares are owned by institutional investors. Comparatively, 0.3% of Alliance Entertainment shares are owned by institutional investors. 0.1% of Genuine Parts shares are owned by company insiders. Comparatively, 77.5% of Alliance Entertainment shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Genuine Parts has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500. Comparatively, Alliance Entertainment has a beta of 0.43, meaning that its stock price is 57% less volatile than the S&P 500.
Summary
Genuine Parts beats Alliance Entertainment on 10 of the 15 factors compared between the two stocks.
About Genuine Parts
Genuine Parts Company distributes automotive replacement parts, and industrial parts and materials. It operates in two segments: Automotive Parts Group and Industrial Parts Group segments. The company distributes automotive replacement parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, recreational vehicles, farm vehicles, small engines, farm equipment, marine equipment, and heavy duty equipment; and equipment and parts used by repair shops, service stations, fleet operators, automobile and truck dealers, leasing companies, bus and truck lines, mass merchandisers, farms, and individuals. It also distributes industrial replacement parts and related supplies, such as abrasives, adhesives, sealants and tape, bearings, chemicals, cutting tools, electrical, facility maintenance, hose and fittings, hydraulics, janitorial, mechanical power transmission, pneumatics, process pumps and equipment, safety, seals and gaskets, and tools and testing instruments, as well as maintenance, repair, and operation customers in aggregate and cement, automotive, chemical and allied products, equipment and machinery, equipment rental and leasing, fabricated metals, food and beverage, iron and steel, lumber and wood, oil and gas, pulp and paper, and rubber products. In addition, the company provides various services and repairs comprising gearbox and fluid power and process pump assembly and repair, hydraulic drive shaft repair, electrical panel assembly and repair, hose and gasket manufacture and assembly. It operates in the United States, Canada, France, the United Kingdom, Ireland, Germany, Poland, the Netherlands, Belgium, Spain, Portugal, Australia, New Zealand, Mexico, Indonesia, and Singapore. The company was incorporated in 1928 and is headquartered in Atlanta, Georgia.
About Alliance Entertainment
Alliance Entertainment Holding Corporation operates as a wholesaler, distributor, and e-commerce provider for the entertainment industry worldwide. It offers vinyl records, video games, digital video discs, blu-rays, toys, compact discs, collectibles, and other entertainment and consumer products. The company also provides third party logistics products and services. It distributes its physical media, entertainment products, hardware, and accessories through multi-channel strategy. The company was founded in 1990 and is headquartered in Plantation, Florida.
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