Contrasting Hour Loop (NASDAQ:HOUR) & Carvana (NYSE:CVNA)

Hour Loop (NASDAQ:HOUR) and Carvana (NYSE:CVNA) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Volatility & Risk

Hour Loop has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500. Comparatively, Carvana has a beta of 3.6, meaning that its stock price is 260% more volatile than the S&P 500.

Earnings and Valuation

This table compares Hour Loop and Carvana”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hour Loop	$142.44 million	0.45	$1.71 million	$0.05	36.40
Carvana	$20.32 billion	3.36	$1.41 billion	$8.04	38.80

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

Insider & Institutional Ownership

0.3% of Hour Loop shares are owned by institutional investors. Comparatively, 56.7% of Carvana shares are owned by institutional investors. 95.0% of Hour Loop shares are owned by company insiders. Comparatively, 17.1% of Carvana shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and target prices for Hour Loop and Carvana, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hour Loop	1	0	0	0	1.00
Carvana	0	6	18	1	2.80

Carvana has a consensus target price of $440.59, suggesting a potential upside of 41.23%. Given Carvana’s stronger consensus rating and higher possible upside, analysts plainly believe Carvana is more favorable than Hour Loop.

Profitability

This table compares Hour Loop and Carvana’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hour Loop	1.20%	24.69%	7.00%
Carvana	6.92%	50.96%	13.63%

Summary

Carvana beats Hour Loop on 14 of the 15 factors compared between the two stocks.

About Hour Loop

Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells products in various categories, including home/garden décor, toys, kitchenware, apparels, and electronics products. It sells its products through hourloop.com, as well as third-party marketplaces. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying and selling used cars in the United States. Its platform allows customers to research and identify a vehicle; inspect it using company's 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up from their desktop or mobile devices. The company also operates auction sites. The company was founded in 2012 and is based in Tempe, Arizona.