Analyzing GUD (OTCMKTS:GUDHF) and Holley (NYSE:HLLY)

GUD (OTCMKTS:GUDHF) and Holley (NYSE:HLLY) are both consumer discretionary companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for GUD and Holley, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GUD	0	0	0	0	0.00
Holley	1	1	4	1	2.71

Holley has a consensus price target of $4.90, suggesting a potential upside of 82.50%. Given Holley’s stronger consensus rating and higher possible upside, analysts plainly believe Holley is more favorable than GUD.

Valuation and Earnings

This table compares GUD and Holley”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GUD	N/A	N/A	N/A	C$0.42	12.08
Holley	$607.80 million	0.54	$19.17 million	$0.19	14.13

Holley has higher revenue and earnings than GUD. GUD is trading at a lower price-to-earnings ratio than Holley, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

16.5% of GUD shares are owned by institutional investors. Comparatively, 39.7% of Holley shares are owned by institutional investors. 4.9% of Holley shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares GUD and Holley’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GUD	N/A	N/A	N/A
Holley	3.89%	5.46%	2.09%

Summary

Holley beats GUD on 11 of the 12 factors compared between the two stocks.

About GUD

GUD Holdings Limited, through its subsidiaries, manufactures, imports, distributes, and sells automotive products in Australia, New Zealand, Thailand, South Korea, France, and the United States. It operates through Automotive, Auto Pacific Group (APG), and Davey segments. The Automotive segment offers automotive and heavy-duty filters for cars, trucks, and agricultural and mining equipment; automotive electrical and lighting products; and fuel pumps and associated products and accessories for the automotive after-market. The APG segment manufactures and markets towing, trailering, functional accessories, and associated products for the automotive aftermarket and original equipment manufacturer customers. The Davey segment provides pumps and pressure systems for household and farm water; water transfer pumps; swimming pool products; spa bath controllers; and pumps and water purification equipment. The company was incorporated in 1958 and is based in Altona North, Australia.

About Holley

Holley Inc. operates as designer, manufacturer, and marketer of automotive aftermarket products for car and truck enthusiasts in the United States, Canada, Europe, and China. Its products span various automotive platforms and sells across multiple channels. The company's performance automotive products include carburetors, fuel pumps, fuel injection systems, nitrous oxide injection systems, superchargers, exhaust headers, mufflers, distributors, ignition components, engine tuners, automotive performance plumbing products; and exhaust products, as well as shifters, converters, transmission kits, transmissions, tuners, and automotive software. It also offers brakes and brake systems, vehicle restoration parts, helmets, head and neck restraints, seat belts, fire suits, and electronic control and monitoring systems. The company sells its products under the Holley, Holley EFI, MSD, Simpson, Powerteq, Accel, and Flowmaster through DTC, E-tailer, warehouse distributor, traditional retailer, and jobber/ installer channels. Holley Inc. was founded in 1903 and is headquartered in Bowling Green, Kentucky.