Atmus Filtration Technologies Inc. (ATMU) vs LKQ Corporation (LKQ)

Atmus Filtration Technologies Inc. and LKQ Corporation are both Auto Parts companies. LKQ Corporation is the larger, with a market value of $5.8B against $3.7B — 1.6× the size. LKQ Corporation trades at the lower P/E: 12.9× against 17.0×. Atmus Filtration Technologies Inc. grew revenue faster over the last twelve months: 13.1% against 3.31%. Atmus Filtration Technologies Inc. has the higher net margin (11.3% vs 3.37%) and the higher return on invested capital (17.1% vs 5.38%). Across the 22 metrics below, Atmus Filtration Technologies Inc. leads on 12 and LKQ Corporation on 10.

Valuation

Metric ATMU LKQ Auto Parts median
P/E 17.03 12.94 17.92
P/S 1.92 0.43 0.64
P/B 8.04 0.92 1.15
Price to free cash flow 19.20 9.49 12.82
EV/EBITDA 12.05 7.16 7.66
EV/Sales 2.31 0.70 0.73
Earnings yield 5.87% 7.73% 2.73%
Free cash flow yield 5.21% 10.54% 3.47%

Profitability

Metric ATMU LKQ Auto Parts median
Gross margin 28.82% 38.34% 22.64%
Operating margin 17.16% 6.35% 3.67%
Net margin 11.32% 3.37% 1.68%
Free cash flow margin 10.02% 4.57% 2.31%
Return on equity 55.79% 7.08% 2.35%
Return on assets 13.43% 2.98% 0.89%
Return on invested capital 17.06% 5.38% 4.55%

Growth

Metric ATMU LKQ Auto Parts median
Revenue growth (TTM) 13.05% 3.31% 5.00%
EPS growth (last fiscal year) 12.61% (10.31%) —
Revenue growth, 5-year CAGR 7.44% 3.26% 7.78%
Net income growth, 5-year CAGR 7.75% (0.99%) 0.00%

Health

Metric ATMU LKQ Auto Parts median
Debt to equity 2.20 0.61 0.38
Current ratio 2.65 1.58 1.78
Net debt to EBITDA 1.01 2.29 1.26

Dividend

Metric ATMU LKQ Auto Parts median
Dividend yield — 2.37% 2.37%
Payout ratio — 0.29 0.00

Size

Metric ATMU LKQ Auto Parts median
Market cap 3.65b 5.82b 914.31m

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