Financial Review: LKQ (NASDAQ:LKQ) & GigaCloud Technology (NASDAQ:GIGGW)

GigaCloud Technology (NASDAQ:GIGGW) and LKQ (NASDAQ:LKQ) are both consumer discretionary companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, dividends, valuation, risk, earnings and institutional ownership.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GigaCloud Technology and LKQ, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GigaCloud Technology	0	0	0	0	0.00
LKQ	0	3	3	0	2.50

LKQ has a consensus target price of $31.08, suggesting a potential upside of 33.12%. Given LKQ’s stronger consensus rating and higher possible upside, analysts plainly believe LKQ is more favorable than GigaCloud Technology.

Valuation & Earnings

This table compares GigaCloud Technology and LKQ”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GigaCloud Technology	N/A	N/A	N/A	N/A	N/A
LKQ	$13.69 billion	0.43	$607.00 million	$1.80	12.97

LKQ has higher revenue and earnings than GigaCloud Technology.

Profitability

This table compares GigaCloud Technology and LKQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GigaCloud Technology	N/A	N/A	N/A
LKQ	3.37%	10.84%	4.64%

Institutional & Insider Ownership

95.6% of LKQ shares are held by institutional investors. 0.4% of LKQ shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

LKQ beats GigaCloud Technology on 9 of the 9 factors compared between the two stocks.

About LKQ

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.