Allison Transmission Holdings, Inc. (ALSN) vs LKQ Corporation (LKQ)

Allison Transmission Holdings, Inc. and LKQ Corporation are both Auto Parts companies. Allison Transmission Holdings, Inc. is the larger, with a market value of $9.6B against $5.2B — 1.9× the size. Allison Transmission Holdings, Inc. trades at the lower P/E: 16.6× against 20.7×. Allison Transmission Holdings, Inc. grew revenue faster over the last twelve months: 70.8% against 1.60%. Allison Transmission Holdings, Inc. has the higher net margin (11.1% vs 1.89%) and the higher return on invested capital (10.7% vs 4.17%). Both pay a dividend; LKQ Corporation yields more (5.85% vs 0.98%). Across the 23 metrics below, Allison Transmission Holdings, Inc. leads on 13 and LKQ Corporation on 10.

Valuation

Metric ALSN LKQ Auto Parts median
P/E 16.59 20.67 14.81
P/S 1.84 0.38 0.55
P/B 4.89 0.82 1.16
Price to free cash flow 11.64 8.51 10.18
EV/EBITDA 11.91 7.73 7.39
EV/Sales 2.52 0.64 0.67
Earnings yield 6.03% 4.84% 3.46%
Free cash flow yield 8.59% 11.75% 2.74%

Profitability

Metric ALSN LKQ Auto Parts median
Gross margin 33.93% 38.07% 22.13%
Operating margin 18.33% 4.80% 3.50%
Net margin 11.12% 1.89% 1.89%
Free cash flow margin 15.85% 4.52% 1.43%
Return on equity 29.74% 3.95% 0.96%
Return on assets 8.15% 1.68% 1.20%
Return on invested capital 10.74% 4.17% 4.41%

Growth

Metric ALSN LKQ Auto Parts median
Revenue growth (TTM) 70.84% 1.60% 4.32%
EPS growth (last fiscal year) (11.79%) (10.31%) 5.72%
Revenue growth, 5-year CAGR 7.66% 3.26% 7.66%
Net income growth, 5-year CAGR 15.81% (0.99%) 0.00%

Health

Metric ALSN LKQ Auto Parts median
Debt to equity 1.93 0.59 0.43
Current ratio 1.77 1.75 1.73
Net debt to EBITDA 1.38 2.29 1.26

Dividend

Metric ALSN LKQ Auto Parts median
Dividend yield 0.98% 5.85% 1.97%
Payout ratio 0.16 1.21 0.27

Size

Metric ALSN LKQ Auto Parts median
Market cap 9.62b 5.18b 1.03b

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