Comparing Magazine Luiza (OTCMKTS:MGLUY) & CarParts.com (NASDAQ:PRTS)

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

Valuation & Earnings

This table compares Magazine Luiza and CarParts.com”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Magazine Luiza	N/A	N/A	N/A	N/A	N/A
CarParts.com	$547.53 million	0.10	-$50.44 million	($6.20)	-1.09

Magazine Luiza has higher earnings, but lower revenue than CarParts.com.

Institutional & Insider Ownership

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Magazine Luiza and CarParts.com, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Magazine Luiza	0	1	0	0	2.00
CarParts.com	1	1	0	0	1.50

CarParts.com has a consensus target price of $6.00, indicating a potential downside of 11.11%. Given CarParts.com’s higher probable upside, analysts plainly believe CarParts.com is more favorable than Magazine Luiza.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Magazine Luiza	N/A	N/A	N/A
CarParts.com	-5.35%	-46.73%	-14.36%

About Magazine Luiza

Magazine Luiza S.A. engages in the retail sale of consumer goods. It operates through Retail, Financial Operations, Insurance Operations, and Other Services segments. The company also grants credit and provides extended warranties for its products. In addition, it is involved in the provision of consortium and management services; and e-commerce of perfumes, cosmetics, sports, and fashion products, as well as product delivery management and software development services. Further, the company provides integration, logistics, and technological solutions, as well as resale goods and provision of services in the stores, electronic and food delivery management platform. It serves through physical stores, e-commerce platform, and SuperApp. The company was founded in 1957 and is headquartered in Franca, Brazil. Magazine Luiza S.A. operates as a subsidiary of LTD Administração e Participação S.A.

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.