Critical Review: Copart (CPRT) vs. Carvana (CVNA)
Copart (NASDAQ: CPRT) and Carvana (NASDAQ:CVNA) are both business services companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, profitabiliy and valuation.
Earnings & Valuation
This table compares Copart and Carvana’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Copart||$1.40 billion||5.14||$504.25 million||$1.72||18.16|
|Carvana||$451.27 million||0.64||-$103.11 million||N/A||N/A|
Copart has higher revenue and earnings than Carvana.
This table compares Copart and Carvana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and price targets for Copart and Carvana, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Copart presently has a consensus target price of $52.50, suggesting a potential upside of 68.05%. Carvana has a consensus target price of $17.33, suggesting a potential downside of 10.24%. Given Copart’s higher possible upside, analysts plainly believe Copart is more favorable than Carvana.
Insider and Institutional Ownership
40.3% of Copart shares are held by institutional investors. 17.0% of Copart shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Copart beats Carvana on 9 of the 11 factors compared between the two stocks.
Copart, Inc. (Copart) is a provider of online auctions and vehicle remarketing services in the United States, Canada, the United Kingdom, the United Arab Emirates, Oman, Bahrain, Brazil, Ireland, Spain and India. The Company also provides vehicle remarketing services in Germany. The Company operates through two segments: United States and International. The Company provides vehicle sellers with a range of services to process and sell vehicles primarily over the Internet through its virtual bidding third generation Internet auction-style sales technology (VB3). The Company’s service offerings include Online Seller Access, Salvage Estimation Services, Estimating Services, End-Of-Life Vehicle Processing, Virtual Insured Exchange (VIX), Transportation Services, Vehicle Inspection Stations, On-Demand Reporting, Department of Motor Vehicle (DMV) Processing, Flexible Vehicle Processing Programs, Buy It Now, Member Network, Sales Process, Copart Dealer Services, CashForCars.com and U-Pull-It.
Carvana Co. is an e-commerce platform for buying used cars. On the Company’s platform, consumers can research and identify a vehicle, inspect it using its proprietary 360-degree vehicle imaging technology, obtain financing and warranty coverage, purchase the vehicle and schedule delivery or pick-up, all from their desktop or mobile devices. The Company’s transaction technologies and online platform transform a traditionally time consuming process by allowing customers to secure financing, complete a purchase and schedule delivery online.
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