Analyzing CarParts.com (NASDAQ:PRTS) and Next (OTCMKTS:NXGPY)

CarParts.com (NASDAQ:PRTS) and Next (OTCMKTS:NXGPY) are both consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

CarParts.com has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Next has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Insider & Institutional Ownership

75.3% of CarParts.com shares are held by institutional investors. 6.6% of CarParts.com shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares CarParts.com and Next”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CarParts.com	$547.53 million	0.09	-$50.44 million	($4.33)	-1.42
Next	$9.16 billion	2.78	$577.17 million	N/A	N/A

Next has higher revenue and earnings than CarParts.com.

Profitability

This table compares CarParts.com and Next’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CarParts.com	-5.35%	-47.19%	-14.52%
Next	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations for CarParts.com and Next, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CarParts.com	1	1	0	0	1.50
Next	0	2	0	0	2.00

CarParts.com presently has a consensus target price of $6.00, suggesting a potential downside of 2.12%. Given CarParts.com’s higher possible upside, analysts plainly believe CarParts.com is more favorable than Next.

Summary

Next beats CarParts.com on 8 of the 11 factors compared between the two stocks.

About CarParts.com

CarParts.com, Inc., together with its subsidiaries, operates as an online provider of aftermarket auto parts and accessories in the United States and the Philippines. It offers replacement parts, such as parts for the exterior of an automobile; mirror products; engine and chassis components, as well as other mechanical and electrical parts; and performance parts and accessories. The company sells its products to individual customers through its flagship website www.carparts.com and app; online marketplaces, including third-party auction sites and shopping portals; and auto parts wholesale distributors. The company was formerly known as U.S. Auto Parts Network, Inc. and changed its name to CarParts.com, Inc. in July 2020. CarParts.com, Inc. was incorporated in 1995 and is headquartered in Torrance, California.

About Next

NEXT plc engages in the retail of clothing, beauty, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail; NEXT Online; NEXT Finance; Total Platform; Property Management; and Franchise, Sourcing, and other segments. It offers consumer credit; NEXT branded products; and women’s, men’s, children’s, clothing, homeware, and beauty products under the LABEL brand, as well as other third-party brands. The company also provides property management services, including holding and lease of properties; operates call centers; and websites, marketing, warehousing, and distribution networks to third-party brands. It operates through retail stores, online retail platforms, and franchise stores. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.