Lear Corporation (LEA) vs LKQ Corporation (LKQ)

Lear Corporation and LKQ Corporation are both Auto Parts companies. Lear Corporation and LKQ Corporation are of similar size ($5.9B and $5.8B). Lear Corporation trades at the lower P/E: 11.4× against 12.9×. Lear Corporation grew revenue faster over the last twelve months: 3.54% against 3.31%. LKQ Corporation has the higher net margin (3.37% vs 2.35%) and the lower return on invested capital (5.38% vs 7.73%). Both pay a dividend; LKQ Corporation yields more (2.37% vs 2.33%). Across the 23 metrics below, Lear Corporation leads on 16 and LKQ Corporation on 7.

Valuation

Metric LEA LKQ Auto Parts median
P/E 11.44 12.94 17.92
P/S 0.26 0.43 0.64
P/B 1.16 0.92 1.15
Price to free cash flow 7.27 9.49 12.82
EV/EBITDA 5.11 7.16 7.66
EV/Sales 0.33 0.70 0.73
Earnings yield 8.74% 7.73% 2.73%
Free cash flow yield 13.76% 10.54% 3.47%

Profitability

Metric LEA LKQ Auto Parts median
Gross margin 6.86% 38.34% 22.64%
Operating margin 3.67% 6.35% 3.67%
Net margin 2.35% 3.37% 1.68%
Free cash flow margin 3.58% 4.57% 2.31%
Return on equity 10.55% 7.08% 2.35%
Return on assets 3.59% 2.98% 0.89%
Return on invested capital 7.73% 5.38% 4.55%

Growth

Metric LEA LKQ Auto Parts median
Revenue growth (TTM) 3.54% 3.31% 5.00%
EPS growth (last fiscal year) (9.14%) (10.31%) —
Revenue growth, 5-year CAGR 6.41% 3.26% 7.78%
Net income growth, 5-year CAGR 22.48% (0.99%) 0.00%

Health

Metric LEA LKQ Auto Parts median
Debt to equity 0.51 0.61 0.38
Current ratio 1.31 1.58 1.78
Net debt to EBITDA 1.16 2.29 1.26

Dividend

Metric LEA LKQ Auto Parts median
Dividend yield 2.33% 2.37% 2.37%
Payout ratio 0.35 0.29 0.00

Size

Metric LEA LKQ Auto Parts median
Market cap 5.86b 5.82b 914.31m

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