Garrett Motion Inc. (GTX) vs LKQ Corporation (LKQ)

Garrett Motion Inc. and LKQ Corporation are both Auto Parts companies. LKQ Corporation is the larger, with a market value of $5.2B against $3.6B — 1.5× the size. Garrett Motion Inc. trades at the lower P/E: 10.1× against 20.1×. Garrett Motion Inc. grew revenue faster over the last twelve months: 6.93% against 1.60%. Garrett Motion Inc. has the higher net margin (9.97% vs 1.89%) and the higher return on invested capital (64.4% vs 4.17%). Both pay a dividend; LKQ Corporation yields more (6.00% vs 1.59%). Across the 22 metrics below, Garrett Motion Inc. leads on 14 and LKQ Corporation on 8.

Valuation

Metric GTX LKQ Auto Parts median
P/E 10.07 20.13 14.82
P/S 0.98 0.37 0.57
P/B n/m 0.80 1.23
Price to free cash flow 9.41 8.29 9.97
EV/EBITDA 7.38 7.61 7.40
EV/Sales 1.29 0.63 0.67
Earnings yield 9.93% 4.97% 3.63%
Free cash flow yield 10.62% 12.07% 3.28%

Profitability

Metric GTX LKQ Auto Parts median
Gross margin 21.13% 38.07% 21.73%
Operating margin 14.57% 4.80% 3.50%
Net margin 9.97% 1.89% 1.89%
Free cash flow margin 10.44% 4.52% 1.74%
Return on equity (52.69%) 3.95% 0.33%
Return on assets 15.18% 1.68% 1.24%
Return on invested capital 64.37% 4.17% 4.41%

Growth

Metric GTX LKQ Auto Parts median
Revenue growth (TTM) 6.93% 1.60% 4.71%
EPS growth (last fiscal year) 20.63% (10.31%) 5.72%
Revenue growth, 5-year CAGR 3.39% 3.26% 7.66%
Net income growth, 5-year CAGR 31.12% (0.99%) 0.00%

Health

Metric GTX LKQ Auto Parts median
Debt to equity (2.21) 0.59 0.28
Current ratio 1.04 1.75 1.70
Net debt to EBITDA 2.11 2.29 1.26

Dividend

Metric GTX LKQ Auto Parts median
Dividend yield 1.59% 6.00% 2.02%
Payout ratio 0.16 1.21 0.26

Size

Metric GTX LKQ Auto Parts median
Market cap 3.57b 5.18b 1.02b

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