Genuine Parts vs OEM International Which Is Superior?

When it comes to choosing between genuine parts and OEM international stocks, there are several factors to consider. Genuine parts are made by the original manufacturer and are specifically designed for a particular make and model. On the other hand, OEM international stocks are made by third-party manufacturers but are still held to the same quality standards. Both options have their own advantages and disadvantages, so it is important to weigh your options carefully and consider the specific needs of your vehicle before making a decision.

Genuine Parts or OEM International?

When comparing Genuine Parts and OEM International, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Genuine Parts and OEM International.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Genuine Parts has a dividend yield of 3.25%, while OEM International has a dividend yield of 1.52%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Genuine Parts reports a 5-year dividend growth of 5.70% year and a payout ratio of 50.06%. On the other hand, OEM International reports a 5-year dividend growth of -24.21% year and a payout ratio of 42.03%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Genuine Parts P/E ratio at 15.74 and OEM International's P/E ratio at 27.75. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Genuine Parts P/B ratio is 3.65 while OEM International's P/B ratio is 7.25.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Genuine Parts has seen a 5-year revenue growth of 0.29%, while OEM International's is 0.65%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Genuine Parts's ROE at 24.12% and OEM International's ROE at 27.33%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $122.82 for Genuine Parts and kr114.40 for OEM International. Over the past year, Genuine Parts's prices ranged from $112.74 to $164.45, with a yearly change of 45.87%. OEM International's prices fluctuated between kr92.00 and kr130.00, with a yearly change of 41.30%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.