Dorman Products (DORM) and Its Peers Financial Analysis

Dorman Products (DORM) and Its Peers Financial Analysis

Dorman Products (NASDAQ: DORM) is one of 45 publicly-traded companies in the “Motor vehicle parts & accessories” industry, but how does it contrast to its peers? We will compare Dorman Products to related companies based on the strength of its dividends, profitability, institutional ownership, risk, earnings, valuation and analyst recommendations.

Insider & Institutional Ownership

75.1% of Dorman Products shares are held by institutional investors. Comparatively, 75.6% of shares of all “Motor vehicle parts & accessories” companies are held by institutional investors. 11.9% of Dorman Products shares are held by company insiders. Comparatively, 12.1% of shares of all “Motor vehicle parts & accessories” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for Dorman Products and its peers, as reported by MarketBeat.com.

Dorman Products presently has a consensus target price of $68.33, indicating a potential upside of 2.74%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 12.62%. Given Dorman Products’ peers stronger consensus rating and higher probable upside, analysts clearly believe Dorman Products has less favorable growth aspects than its peers.

Volatility and Risk

Dorman Products has a beta of 0.92, suggesting that its stock price is 8% less volatile than the S&P 500. Comparatively, Dorman Products’ peers have a beta of 1.36, suggesting that their average stock price is 36% more volatile than the S&P 500.

Valuation & Earnings

This table compares Dorman Products and its peers gross revenue, earnings per share (EPS) and valuation.

Dorman Products’ peers have higher revenue and earnings than Dorman Products. Dorman Products is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Dorman Products and its peers’ net margins, return on equity and return on assets.

Summary

Dorman Products peers beat Dorman Products on 9 of the 13 factors compared.

Dorman Products Company Profile

Dorman Products, Inc. supplies automotive replacement parts, automotive hardware, and brake products to the automotive aftermarket and mass merchandise markets in the United States, Canada, Mexico, Europe, the Middle East, and Australia. It offers original equipment dealer products, such as intake manifolds, exhaust manifolds, window regulators, radiator fan assemblies, tire pressure monitor sensors, exhaust gas recirculation coolers, and complex electronics modules; fluid reservoirs, variable valve timing components, complex electronics, and integrated door lock actuators; and fasteners, including oil drain plugs, wheel bolts, and wheel lug nuts. The company also provides automotive replacement parts comprising door handles, keyless remotes and cases, and door hinge repairs; and heavy duty aftermarket parts for class 4-8 vehicles comprising lighting, cooling, engine management, and cab products. In addition, it offers solutions for rugged duty and fleet applications; replacement chassis part solutions; brake hardware products; electrical components; and application specific repair hardware products. The company provides its products under the OE Solutions, HELP!, HD Solutions, Premium Chassis, Premium XL, Premium RD, MAS, FirstStop, ConductTite, and AutoGrade brands through automotive aftermarket retailers, local independent parts wholesalers, national general merchandise chain retailers, mass merchants, salvage yards, and the parts distribution systems of parts manufacturers. Dorman Products, Inc. was founded in 1978 and is headquartered in Colmar, Pennsylvania.

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