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 $5.8B against $4.7B — 1.2× the size. LKQ Corporation trades at the lower P/E: 12.9× against 13.8×. Garrett Motion Inc. grew revenue faster over the last twelve months: 8.47% against 3.31%. Garrett Motion Inc. has the higher net margin (9.51% vs 3.37%) and the higher return on invested capital (62.5% vs 5.38%). Across the 21 metrics below, Garrett Motion Inc. leads on 11 and LKQ Corporation on 10.

Valuation

Metric GTX LKQ Auto Parts median
P/E 13.83 12.94 17.92
P/S 1.28 0.43 0.64
P/B n/m 0.92 1.15
Price to free cash flow 13.19 9.49 12.82
EV/EBITDA 9.38 7.16 7.66
EV/Sales 1.60 0.70 0.73
Earnings yield 7.23% 7.73% 2.73%
Free cash flow yield 7.58% 10.54% 3.47%

Profitability

Metric GTX LKQ Auto Parts median
Gross margin 20.75% 38.34% 22.64%
Operating margin 14.17% 6.35% 3.67%
Net margin 9.51% 3.37% 1.68%
Free cash flow margin 9.72% 4.57% 2.31%
Return on equity (48.02%) 7.08% 2.35%
Return on assets 14.64% 2.98% 0.89%
Return on invested capital 62.50% 5.38% 4.55%

Growth

Metric GTX LKQ Auto Parts median
Revenue growth (TTM) 8.47% 3.31% 5.00%
EPS growth (last fiscal year) 20.63% (10.31%) —
Revenue growth, 5-year CAGR 3.39% 3.26% 7.78%
Net income growth, 5-year CAGR 31.12% (0.99%) 0.00%

Health

Metric GTX LKQ Auto Parts median
Debt to equity (2.03) 0.61 0.38
Current ratio 1.00 1.58 1.78
Net debt to EBITDA 2.11 2.29 1.26

Dividend

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

Size

Metric GTX LKQ Auto Parts median
Market cap 4.72b 5.82b 914.31m

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