Head to Head Analysis: Driven Brands (DRVN) vs. The Competition

Driven Brands (NASDAQ:DRVN) is one of 285 publicly-traded companies in the “Specialty Retail” industry, but how does it compare to its peers? We will compare Driven Brands to related companies based on the strength of its dividends, institutional ownership, analyst recommendations, earnings, profitability, valuation and risk.

Analyst Ratings

This is a summary of current recommendations for Driven Brands and its peers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	3	8	3	2	2.25
Driven Brands Competitors	3699	15637	21656	593	2.46

Driven Brands presently has a consensus target price of $14.98, suggesting a potential upside of 32.19%. As a group, “Specialty Retail” companies have a potential upside of 5.21%. Given Driven Brands’ higher probable upside, research analysts clearly believe Driven Brands is more favorable than its peers.

Volatility and Risk

Driven Brands has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500. Comparatively, Driven Brands’ peers have a beta of 1.91, suggesting that their average share price is 91% more volatile than the S&P 500.

Profitability

This table compares Driven Brands and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	8.61%	24.13%	5.03%
Driven Brands Competitors	-3.59%	-28.53%	3.21%

Valuation and Earnings

This table compares Driven Brands and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Driven Brands	$1.86 billion	$140.16 million	10.89
Driven Brands Competitors	$7.06 billion	$386.51 million	31.37

Driven Brands’ peers have higher revenue and earnings than Driven Brands. Driven Brands is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

77.1% of Driven Brands shares are held by institutional investors. Comparatively, 51.9% of shares of all “Specialty Retail” companies are held by institutional investors. 4.4% of Driven Brands shares are held by insiders. Comparatively, 20.5% of shares of all “Specialty Retail” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Summary

Driven Brands peers beat Driven Brands on 7 of the 13 factors compared.

Driven Brands Company Profile

Driven Brands Holdings Inc. is an automotive aftermarket services company headquartered in Charlotte, North Carolina. It operates and franchises service centers under brands including Take 5 Oil Change, Meineke Car Care Centers, Maaco, CARSTAR and Auto Glass Now. The company provides a range of vehicle services, including oil changes and preventive maintenance, mechanical repairs, collision repair and refinishing, and auto glass replacement. Through 1-800-Radiator & A/C, it also distributes heating and cooling parts to repair shops and other customers.