Driven Brands (NASDAQ:DRVN) vs. Zhongsheng Group (OTCMKTS:ZSHGY) Financial Analysis

Driven Brands (NASDAQ:DRVN) and Zhongsheng Group (OTCMKTS:ZSHGY) are both consumer cyclical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Earnings & Valuation

This table compares Driven Brands and Zhongsheng Group”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Driven Brands	$2.32 billion	1.03	-$744.96 million	($4.66)	-3.11
Zhongsheng Group	N/A	N/A	N/A	$5.36	2.87

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Driven Brands and Zhongsheng Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Driven Brands	0	4	6	1	2.73
Zhongsheng Group	0	0	0	0	N/A

Driven Brands presently has a consensus price target of $16.95, suggesting a potential upside of 16.82%. Given Driven Brands’ higher probable upside, equities research analysts plainly believe Driven Brands is more favorable than Zhongsheng Group.

Profitability

This table compares Driven Brands and Zhongsheng Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Driven Brands	-33.56%	15.12%	2.34%
Zhongsheng Group	N/A	N/A	N/A

Institutional and Insider Ownership

77.1% of Driven Brands shares are owned by institutional investors. Comparatively, 0.0% of Zhongsheng Group shares are owned by institutional investors. 2.6% of Driven Brands shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Driven Brands beats Zhongsheng Group on 8 of the 11 factors compared between the two stocks.

About Driven Brands

Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. It offers various services, such as paint, collision, glass, repair, car wash, oil change, and maintenance services. The company also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as training services to repair and maintenance, and paint and collision shops. It sells its products and services under the CARSTAR, IMO, MAACO, Meineke Car Care Centers, PH Vitres D’Autos, Take 5 Oil Change, Take 5 Car Wash, Auto Glass Now, Fix Auto USA, and 1-800-Radiator & A/C, Spire Supply, and Automotive Training Institute brands. The company was founded in 1972 and is headquartered in Charlotte, North Carolina.

About Zhongsheng Group

Zhongsheng Group Holdings Limited, an investment holding company, engages in the sale and service of motor vehicles in the People's Republic of China. The company operates 4S dealerships for various automobile brands consisting of luxury automobile brands, including Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, and Volvo; and mid-to-high end automobile brands, such as Toyota, Honda, and Nissan. It also provides spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services. The company was founded in 1998 and is headquartered in Dalian, the People's Republic of China.