Analyzing Monro (NASDAQ:MNRO) and Driven Brands (NASDAQ:DRVN)

Monro (NASDAQ:MNRO) and Driven Brands (NASDAQ:DRVN) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, dividends, analyst recommendations, earnings and profitability.

Earnings and Valuation

This table compares Monro and Driven Brands’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Monro $1.13 billion 1.87 $34.32 million $1.14 55.04
Driven Brands $904.20 million N/A -$4.20 million $0.41 71.90

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Monro and Driven Brands, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Monro 0 3 0 0 2.00
Driven Brands 0 3 6 0 2.67

Monro currently has a consensus target price of $58.00, indicating a potential downside of 7.55%. Driven Brands has a consensus target price of $35.75, indicating a potential upside of 21.27%. Given Driven Brands’ stronger consensus rating and higher possible upside, analysts clearly believe Driven Brands is more favorable than Monro.

Profitability

This table compares Monro and Driven Brands’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Monro 3.05% 5.22% 2.09%
Driven Brands N/A N/A N/A

Summary

Monro beats Driven Brands on 6 of the 10 factors compared between the two stocks.

About Monro

Monro, Inc. provides automotive undercar repair, and tire sales and services in the United States. It offers range of state inspections services on passenger cars, light trucks, and vans; products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company also provides maintenance services, including oil change, heating and cooling system Â’flush and fill' service, belt installation, fuel system service, and a transmission Â’flush and fill' service. In addition, it replaces and services batteries, starters, and alternators; and offers inspection and air conditioning services. The company operates its stores under the brand names of Monro Auto Service and Tire Centers, Tread Quarters Discount Tire Auto Service Centers, Mr. Tire Auto Service Centers, Autotire Car Care Centers, Tire Warehouse Tires for Less, Tire Barn Warehouse, Ken Towery's Tire & Auto Care, Tire Choice Auto Service Centers, and Car-X Tire & Auto. As of March 28, 2020, it operated 1,283 company-operated stores, 98 franchised locations, eight wholesale locations, three retread facilities, and two dealer-operated stores in 32 states. The company was formerly known as Monro Muffler Brake, Inc. and changed its name to Monro, Inc. in August 2017. Monro, Inc. was founded in 1957 and is headquartered in Rochester, New York.

About Driven Brands

Driven Brands Holdings Inc. provides automotive services to retail and commercial customers in North America and internationally. It operates through Maintenance; Car Wash, Paint, Collision & Glass; and Platform Services segments. The company offers various services, such as paint, collision, refinishing, glass, vehicle repair, oil change, maintenance, and car wash services. It also distributes a range of automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets, as well as offers automotive training services. As of December 26, 2020, it operated 4,227 company-operated, franchised, and independently-operated stores under the Take 5 Oil Change, Meineke Car Care Centers, MAACO, CARSTAR, 1-800-Radiator & A/C, ABRA, Fix Auto, and Uniban brand names. Driven Brands Holdings Inc. was founded in 1972 and is headquartered in Charlotte, North Carolina.

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