LKQ vs MPAA

For growth investors, Motorcar Parts of America, Inc.

(MPAA) is the stronger pick with 5. 5% revenue growth year-over-year, versus -3. 1% for LKQ Corporation (LKQ). LKQ Corporation (LKQ) offers the better valuation at 12. 2x trailing P/E (9. 5x forward), making it the more compelling value choice. Analysts rate LKQ Corporation (LKQ) a "Buy" — based on 22 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, LKQ Corporation is actually cheaper at 9.

5x.

Over the past 5 years, LKQ Corporation (LKQ) delivered a total return of -32.

1%, compared to -51. 7% for Motorcar Parts of America, Inc. (MPAA). Over 10 years, the gap is even starker: LKQ returned +3. 7% versus MPAA's -62. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), LKQ Corporation (LKQ) is the lower-risk stock at 0.

90β versus Motorcar Parts of America, Inc. 's 0. 99β — meaning MPAA is approximately 10% more volatile than LKQ relative to the S&P 500. On balance sheet safety, LKQ Corporation (LKQ) carries a lower debt/equity ratio of 77% versus 78% for Motorcar Parts of America, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Motorcar Parts of America, Inc.

(MPAA) is pulling ahead at 5. 5% versus -3. 1% for LKQ Corporation (LKQ). On earnings-per-share growth, the picture is similar: Motorcar Parts of America, Inc. grew EPS 60. 6% year-over-year, compared to -10. 6% for LKQ Corporation. Over a 3-year CAGR, MPAA leads at 5. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

LKQ Corporation (LKQ) is the more profitable company, earning 4.

4% net margin versus -2. 6% for Motorcar Parts of America, Inc. — meaning it keeps 4. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: LKQ leads at 7. 8% versus 5. 3% for MPAA. At the gross margin level — before operating expenses — LKQ leads at 38. 0%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, LKQ Corporation (LKQ) trades at 9.

5x forward P/E versus 15. 3x for Motorcar Parts of America, Inc. — 5. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for MPAA: 74. 4% to $20. 00.

In this comparison, LKQ (4.

2% yield) pays a dividend. MPAA does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, LKQ Corporation (LKQ) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

90), 4. 2% yield). Both have compounded well over 10 years (LKQ: +3. 7%, MPAA: -62. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: LKQ is a small-cap deep-value stock; MPAA is a small-cap quality compounder stock. LKQ pays a dividend while MPAA does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.