REE Automotive (NASDAQ:REE – Get Free Report) and CarParts.com (NASDAQ:PRTS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Risk & Volatility
REE Automotive has a beta of 2.33, meaning that its share price is 133% more volatile than the S&P 500. Comparatively, CarParts.com has a beta of 0.7, meaning that its share price is 30% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for REE Automotive and CarParts.com, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| REE Automotive | 1 | 0 | 0 | 0 | 1.00 |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
Valuation and Earnings
This table compares REE Automotive and CarParts.com”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| REE Automotive | $1.30 million | 5.19 | -$55.81 million | ($5.28) | -0.04 |
| CarParts.com | $547.53 million | 0.09 | -$50.44 million | ($6.20) | -1.00 |
CarParts.com has higher revenue and earnings than REE Automotive. CarParts.com is trading at a lower price-to-earnings ratio than REE Automotive, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares REE Automotive and CarParts.com’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| REE Automotive | N/A | N/A | N/A |
| CarParts.com | -6.97% | -61.91% | -19.36% |
Institutional & Insider Ownership
12.7% of REE Automotive 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 insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
REE Automotive beats CarParts.com on 7 of the 13 factors compared between the two stocks.
About REE Automotive
REE Automotive Ltd. operates as an automotive technology company in France, the United Kingdom, the United States, and internationally. The company offers REEcorner, a compact module that integrates critical vehicle drive components comprising as steering, braking, suspension, powertrain, and control between the chassis and the wheel; and REEplatform that allows for the addition of a modular and customizable top hat/cabin design based on customer specifications, without requiring modification to the platform. It also provides P7-S Strip Chassis for commercial delivery vehicles and walk-in vans; P7-C Chassis Cab and Cutway Chassis, a class 4 chassis cab fully electric commercial truck for delivery and a range of vocational applications; and P7-B Box Truck, a class 3 box truck built on a P7 cab chassis with its all-wheel drive and all-wheel steer for vehicle control for better handling and safety in adverse conditions. It serves original equipment manufacturer, delivery and logistic fleets, dealers, e-commerce retailers, new mobility players, mobility-as-a-service providers, and autonomous drive companies. The company is headquartered in Herzliya, Israel.
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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