Tractor Supply (NASDAQ:TSCO – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.
Insider and Institutional Ownership
98.7% of Tractor Supply shares are owned by institutional investors. Comparatively, 75.3% of CarParts.com shares are owned by institutional investors. 0.6% of Tractor Supply shares are owned by company insiders. Comparatively, 6.6% of CarParts.com shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Volatility and Risk
Tractor Supply has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Tractor Supply and CarParts.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tractor Supply | 1 | 14 | 13 | 0 | 2.43 |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
Tractor Supply currently has a consensus target price of $39.00, suggesting a potential upside of 18.87%. CarParts.com has a consensus target price of $6.00, suggesting a potential downside of 24.34%. Given Tractor Supply’s stronger consensus rating and higher possible upside, research analysts clearly believe Tractor Supply is more favorable than CarParts.com.
Valuation and Earnings
This table compares Tractor Supply and CarParts.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tractor Supply | $15.52 billion | 1.11 | $1.10 billion | $1.92 | 17.09 |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($4.33) | -1.83 |
Tractor Supply has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Tractor Supply, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Tractor Supply and CarParts.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tractor Supply | 6.42% | 41.74% | 9.42% |
| CarParts.com | -5.35% | -47.19% | -14.52% |
Summary
Tractor Supply beats CarParts.com on 12 of the 14 factors compared between the two stocks.
About Tractor Supply
Tractor Supply Company operates as a rural lifestyle retailer in the United States. The company offers various merchandise, including livestock and equine feed and equipment, poultry, fencing, and sprayers and chemicals; food, treats, and equipment for dogs, cats, and other small animals, as well as dog wellness products; seasonal and recreation products comprising tractors and riders, lawn and garden, bird feeding, power equipment, and other recreational products; truck, tool, and hardware products, such as truck accessories, trailers, generators, lubricants, batteries, and hardware and tools; and clothing, gift, and décor products consist of clothing, footwear, toys, snacks, and decorative merchandise. It provides its products under the 4health, Paws & Claws, American Farmworks, Producer's Pride, Bit & Bridle, Red Shed, Blue Mountain, Redstone, C.E. Schmidt, Retriever, Country Lane, Ridgecut, Countyline, Royal Wing, Country Tuff, Strive, Dumor, Traveller, Farm Table, Treeline, Groundwork, TSC Tractor Supply Co, Huskee, Untamed, and JobSmart brand names. The company operates its retail stores under the Tractor Supply Company, Petsense by Tractor Supply, and Orscheln Farm and Home names; and operates websites under the TractorSupply.com and Petsense.com names. It sells its products to recreational farmers, ranchers, and others. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.
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.
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