Critical Survey: Carvana (NYSE:CVNA) and OLB Group (NASDAQ:OLB)

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

Insider and Institutional Ownership

56.7% of Carvana shares are owned by institutional investors. Comparatively, 3.8% of OLB Group shares are owned by institutional investors. 15.2% of Carvana shares are owned by company insiders. Comparatively, 60.2% of OLB Group shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and price targets for Carvana and OLB Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carvana	0	6	17	1	2.79
OLB Group	1	0	0	0	1.00

Carvana presently has a consensus price target of $93.14, suggesting a potential upside of 40.06%. Given Carvana’s stronger consensus rating and higher probable upside, equities analysts plainly believe Carvana is more favorable than OLB Group.

Profitability

This table compares Carvana and OLB Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carvana	6.40%	41.46%	12.48%
OLB Group	-73.19%	-96.26%	-45.18%

Earnings and Valuation

This table compares Carvana and OLB Group”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carvana	$20.32 billion	3.59	$1.41 billion	$1.64	40.55
OLB Group	$8.68 million	0.77	-$5.87 million	($0.87)	-0.52

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

Risk and Volatility

Carvana has a beta of 3.45, suggesting that its share price is 245% more volatile than the S&P 500. Comparatively, OLB Group has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500.

Summary

Carvana beats OLB Group on 14 of the 15 factors compared between the two stocks.

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.

About OLB Group

The OLB Group, Inc. is a diversified fintech e-commerce merchant services provider and Bitcoin crypto mining enterprise. The Company’s eCommerce platform delivers e-commerce services for a digital commerce solution to over 10,500 merchants in all 50 states. The Company’s wholly owned subsidiary, DMINT, Inc, is engaged in the mining of Bitcoin utilizing low carbon natural gas with over 1,000 application-specific integrated circuit (ASIC)-based S19j Pro 96T mining computers. www.olb.com and www.olb.com/investors-data.