Worksport (NASDAQ:WKSP) and Motorcar Parts of America (NASDAQ:MPAA) Critical Survey

Worksport (NASDAQ:WKSP) and Motorcar Parts of America (NASDAQ:MPAA) are both small-cap retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, analyst recommendations, risk and earnings.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Worksport and Motorcar Parts of America, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worksport	0	0	0	0	N/A
Motorcar Parts of America	0	0	0	0	N/A

Risk and Volatility

Worksport has a beta of 0.74, meaning that its stock price is 26% less volatile than the S&P 500. Comparatively, Motorcar Parts of America has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500.

Profitability

This table compares Worksport and Motorcar Parts of America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worksport	-410.82%	-84.45%	-58.39%
Motorcar Parts of America	-9.06%	-0.93%	-0.26%

Earnings and Valuation

This table compares Worksport and Motorcar Parts of America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worksport	$1.53 million	14.13	-$14.93 million	($0.75)	-0.93
Motorcar Parts of America	$717.68 million	0.14	-$49.24 million	($3.45)	-1.51

Worksport has higher earnings, but lower revenue than Motorcar Parts of America. Motorcar Parts of America is trading at a lower price-to-earnings ratio than Worksport, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

16.1% of Worksport shares are held by institutional investors. Comparatively, 83.5% of Motorcar Parts of America shares are held by institutional investors. 9.4% of Worksport shares are held by insiders. Comparatively, 6.7% of Motorcar Parts of America shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Motorcar Parts of America beats Worksport on 6 of the 11 factors compared between the two stocks.

About Worksport

Worksport Ltd., through its subsidiary, designs and distributes truck tonneau covers in Canada and the United States. The company offers soft tonneau covers, such as vinyl wrapped tri- and quad-fold tonneau covers; and hard tonneau covers, including tri- and quad-fold aluminum covers. It also offers energy products, such as Worksport SOLIS, a tonneau cover with integrated solar panels; and Worksport COR energy storage system, a modular, portable power station. It serves its products to automotive accessories, consumer electronics, and residential and commercial HVAC system markets. The company also sells its products through wholesalers, private labels, distributors, and online retail channels, including eBay, Amazon, Walmart, and e-commerce platform hosted on Shopify. Worksport Ltd. is based in West Seneca, New York.

About Motorcar Parts of America

Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts in the United States. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers turbochargers; test solutions and diagnostic equipment for the pre- and post-production of electric vehicles; combustion engine vehicles; and software emulation of power systems applications for the electrification of forms of transportation. In addition, it offers heavy duty parts, including non-discretionary automotive aftermarket replacement hard parts for heavy-duty truck, industrial, marine, and agricultural applications. It sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. The company was incorporated in 1968 and is based in Torrance, California.