CarParts.com (NASDAQ:PRTS – Get Free Report) and Urban Outfitters (NASDAQ:URBN – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.
Analyst Ratings
This is a summary of recent ratings and recommmendations for CarParts.com and Urban Outfitters, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CarParts.com | 1 | 1 | 0 | 0 | 1.50 |
| Urban Outfitters | 0 | 7 | 9 | 0 | 2.56 |
CarParts.com currently has a consensus price target of $6.00, suggesting a potential downside of 24.34%. Urban Outfitters has a consensus price target of $90.54, suggesting a potential upside of 4.27%. Given Urban Outfitters’ stronger consensus rating and higher possible upside, analysts plainly believe Urban Outfitters is more favorable than CarParts.com.
Institutional & Insider Ownership
75.3% of CarParts.com shares are held by institutional investors. Comparatively, 77.6% of Urban Outfitters shares are held by institutional investors. 6.6% of CarParts.com shares are held by insiders. Comparatively, 32.1% of Urban Outfitters shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Volatility & Risk
CarParts.com has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500. Comparatively, Urban Outfitters has a beta of 1.24, meaning that its share price is 24% more volatile than the S&P 500.
Valuation & Earnings
This table compares CarParts.com and Urban Outfitters”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CarParts.com | $547.53 million | 0.12 | -$50.44 million | ($4.33) | -1.83 |
| Urban Outfitters | $6.17 billion | 1.21 | $464.92 million | $6.41 | 13.55 |
Urban Outfitters has higher revenue and earnings than CarParts.com. CarParts.com is trading at a lower price-to-earnings ratio than Urban Outfitters, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares CarParts.com and Urban Outfitters’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CarParts.com | -5.35% | -47.19% | -14.52% |
| Urban Outfitters | 8.79% | 18.64% | 10.34% |
Summary
Urban Outfitters beats CarParts.com on 13 of the 13 factors compared between the two stocks.
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.
About Urban Outfitters
Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products. The company operates through three segments: Retail, Wholesale, and Nuuly. It operates Urban Outfitters stores, which offer women's and men's fashion apparel, activewear, intimates, footwear, accessories, home goods, electronics, and beauty products for young adults aged 18 to 28; and Anthropologie stores that provide women's apparel, accessories, intimates, shoes, and home furnishings, as well as gifts, decorative items, and beauty and wellness products for women aged 28 to 45. The company also operates Terrain stores that provide lifestyle home products, garden and outdoor living products, antiques, live plants, flowers, wellness products, and accessories. In addition, it operates Free People retail stores, which offer casual women's apparel, intimates, activewear, shoes, accessories, home products, gifts, and beauty and wellness products for young women aged 25 to 30; and restaurants, as well as women's apparel subscription rental service under the Nuuly brand. Further, the company is involved in the wholesale of young women's contemporary casual apparel, intimates, activewear, and shoes under the Free People brand; and apparel collections under the Urban Outfitters brand. The company serves its customers directly through retail stores, websites, mobile applications, catalogs and customer contact centers, franchisee-owned stores, and department and specialty stores, as well as social media and third-party digital platforms. Urban Outfitters, Inc. was founded in 1970 and is based in Philadelphia, Pennsylvania.
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