Critical Analysis: Copart (NASDAQ:CPRT) & NextNRG (NASDAQ:NXXT)

Copart (NASDAQ:CPRT) and NextNRG (NASDAQ:NXXT) are both business services companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.

Volatility and Risk

Copart has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, NextNRG has a beta of -0.59, indicating that its stock price is 159% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Copart and NextNRG, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Copart	0	2	1	0	2.33
NextNRG	0	0	0	0	0.00

Copart presently has a consensus price target of $55.50, indicating a potential upside of 15.91%. Given Copart’s stronger consensus rating and higher probable upside, equities analysts plainly believe Copart is more favorable than NextNRG.

Profitability

This table compares Copart and NextNRG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Copart	32.21%	18.20%	16.36%
NextNRG	-59.56%	N/A	-180.71%

Insider & Institutional Ownership

85.8% of Copart shares are held by institutional investors. Comparatively, 10.6% of NextNRG shares are held by institutional investors. 9.7% of Copart shares are held by company insiders. Comparatively, 81.7% of NextNRG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Copart and NextNRG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Copart	$4.24 billion	10.93	$1.36 billion	$1.52	31.50
NextNRG	$27.77 million	13.01	-$16.19 million	($6.67)	-0.46

Copart has higher revenue and earnings than NextNRG. NextNRG is trading at a lower price-to-earnings ratio than Copart, indicating that it is currently the more affordable of the two stocks.

Summary

Copart beats NextNRG on 12 of the 14 factors compared between the two stocks.

About Copart

Copart, Inc. provides online auctions and vehicle remarketing services. It offers a range of services for processing and selling vehicles over the Internet through its Virtual Bidding Third Generation Internet auction-style sales technology on behalf of vehicle sellers, insurance companies, banks and finance companies, charities, and fleet operators and dealers, as well as individual owners. The company’s services include online seller access, salvage estimation, estimating, end-of-life vehicle processing, virtual insured exchange, transportation, vehicle inspection stations, on-demand reporting, motor vehicle regulatory agency processing, flexible vehicle processing programs, buy it now, member network, sales process, and dealer services. Its services also include buying vehicles through CashForCars.com and Copart Direct. The company sells its products principally to licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, and exporters, as well as to the general public. It operates in the United States, Canada, the United Kingdom, Brazil, the Republic of Ireland, Germany, Finland, the United Arab Emirates, Oman, Bahrain, and Spain. Copart, Inc. was founded in 1982 and is headquartered in Dallas, Texas.

About NextNRG

NextNRG, Inc. engages in the provision of fuel delivery services. It provides app-based interface customers with the ability to select the time and location of their fueling. It offers diesel, red diesel, and REC-90. The company was founded by Yehuda Levy and Michael D. Farkas on March 28, 2019 and is headquartered in Miami, FL.