IAA (NYSE:IAA) and TravelCenters of America (NASDAQ:TA) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.

Earnings & Valuation

This table compares IAA and TravelCenters of America’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IAA N/A N/A N/A N/A N/A
TravelCenters of America $6.23 billion 0.02 -$120.55 million ($3.20) -5.47

IAA has higher earnings, but lower revenue than TravelCenters of America.

Profitability

This table compares IAA and TravelCenters of America’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IAA N/A N/A N/A
TravelCenters of America -0.26% -3.60% -0.66%

Analyst Recommendations

This is a summary of recent ratings and price targets for IAA and TravelCenters of America, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IAA 0 1 8 0 2.89
TravelCenters of America 0 1 1 0 2.50

IAA presently has a consensus price target of $50.17, indicating a potential upside of 4.41%. TravelCenters of America has a consensus price target of $22.25, indicating a potential upside of 27.07%. Given TravelCenters of America’s higher possible upside, analysts clearly believe TravelCenters of America is more favorable than IAA.

Institutional & Insider Ownership

97.9% of IAA shares are owned by institutional investors. Comparatively, 34.7% of TravelCenters of America shares are owned by institutional investors. 8.4% of TravelCenters of America shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

IAA beats TravelCenters of America on 6 of the 9 factors compared between the two stocks.

About IAA

IAA, Inc. provides salvage vehicle auctions and related services. It offers salvage auction services, such as inbound transportation logistics, inspection, evaluation, salvage recovery, titling, and settlement administrative services. The company's salvage auctions facilitate the remarketing of damaged vehicles designated as total losses by insurance companies, charity donation vehicles, recovered stolen (or theft) vehicles, and low value used vehicles through live and online auctions. As of December 31, 2018, it operated 179 salvage vehicle auction sites in the United States and Canada; and 14 locations in the United Kingdom. Insurance Auto Auctions, Inc. serves insurance companies, used vehicle dealers, rental car and fleet leasing companies, auto lenders, non-profit organizations, and the general public. The company was founded in 1982 and is headquartered in Westchester, Illinois. IAA, Inc.(NYSE:IAA) operates independently of KAR Auction Services, Inc. as of June 28, 2019.

About TravelCenters of America

TravelCenters of America LLC operates travel centers and standalone restaurants in the United States and Canada. Its travel centers offer a range of products and services, including diesel fuel and gasoline, as well as nonfuel products and services, such as parking, truck repair and maintenance services, full service restaurants, quick service restaurants, and various customer amenities. As of December 31, 2018, it operated 258 travel centers and under the TravelCenters of America, TA, TA Express, Petro Stopping Centers, and Petro brand names; and 43 standalone restaurants under the Quaker Steak & Lube brand name. The company serves trucking fleets and their drivers, independent truck drivers, highway and local motorists, and casual diners. TravelCenters of America LLC was founded in 1992 and is based in Westlake, Ohio.

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