Reviewing Hennes & Mauritz (OTCMKTS:HNNMY) and CarParts.com (NASDAQ:PRTS)

Hennes & Mauritz (OTCMKTS:HNNMY) and CarParts.com (NASDAQ:PRTS) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.

Earnings and Valuation

This table compares Hennes & Mauritz and CarParts.com”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hennes & Mauritz	$23.01 billion	1.00	$1.23 billion	$0.17	19.29
CarParts.com	$547.53 million	0.11	-$50.44 million	($4.33)	-1.74

Hennes & Mauritz has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Hennes & Mauritz, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Hennes & Mauritz and CarParts.com, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hennes & Mauritz	3	4	0	0	1.57
CarParts.com	1	1	0	0	1.50

CarParts.com has a consensus price target of $6.00, indicating a potential downside of 20.42%. Given CarParts.com’s higher probable upside, analysts plainly believe CarParts.com is more favorable than Hennes & Mauritz.

Risk & Volatility

Hennes & Mauritz has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hennes & Mauritz	5.94%	33.70%	7.80%
CarParts.com	-5.35%	-47.19%	-14.52%

Insider & Institutional Ownership

0.0% of Hennes & Mauritz shares are owned by institutional investors. Comparatively, 75.3% of CarParts.com shares are owned by institutional investors. 6.6% of CarParts.com shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Hennes & Mauritz beats CarParts.com on 9 of the 12 factors compared between the two stocks.

About Hennes & Mauritz

H & M Hennes & Mauritz AB (publ) provides clothing, accessories, footwear, cosmetics, home textiles, and homeware for women, men, and children worldwide. It offers sportswear, shoes, bags, beauty products, activewear, jeans, and ready-to-wear; and interior products, including bed linens, dinnerware, textiles, furniture, and lighting. The company provides its products under the H&M, H&M HOME, H&M Move, H&M Beauty, COS, Weekday, Monki, & Other Stories, ARKET, Afound, and Singular Society brand names. In addition, it operates Sellpy, a broad digital platform for second-hand fashion and other products; and Creator Studio, a global platform for merchandise design and production, as well as provides solutions to extend the useful life of unwanted garments through reuse and recycling under Looper Textile name. The company offers its products through online and physical stores. H & M Hennes & Mauritz AB (publ) was incorporated in 1943 and is headquartered in Stockholm, Sweden.

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.