Critical Survey: Inchcape (OTCMKTS:INCPY) versus Driven Brands (NASDAQ:DRVN)

Inchcape (OTCMKTS:INCPY) and Driven Brands (NASDAQ:DRVN) are both consumer cyclical companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inchcape	N/A	N/A	N/A
Driven Brands	-33.56%	15.12%	2.34%

Analyst Recommendations

This is a summary of recent ratings for Inchcape and Driven Brands, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Inchcape	0	0	0	0	N/A
Driven Brands	0	4	6	1	2.73

Driven Brands has a consensus price target of $16.95, indicating a potential upside of 19.45%. Given Driven Brands’ higher probable upside, analysts plainly believe Driven Brands is more favorable than Inchcape.

Institutional and Insider Ownership

77.1% of Driven Brands shares are held by institutional investors. 2.3% of Driven Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Inchcape and Driven Brands”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inchcape	N/A	N/A	N/A	N/A	N/A
Driven Brands	$2.32 billion	1.00	-$744.96 million	($4.70)	-3.02

Inchcape has higher earnings, but lower revenue than Driven Brands.

Summary

Driven Brands beats Inchcape on 8 of the 9 factors compared between the two stocks.

About Inchcape

Inchcape plc operates as an automotive distributor and retailer. The company engages in the distribution, sales, and marketing of new and used cars, and parts. It also provides aftersales service and body shop repairs; and finance and insurance products and services. The company operates in the Asia Pacific, the United Kingdom, rest of Europe, the Americas, and Africa. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.

About Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.