Carvana (NYSE: CVNA) and Copart (NASDAQ:CPRT) are both mid-cap retail/wholesale companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, institutional ownership, valuation, dividends and profitability.

Institutional & Insider Ownership

15.2% of Carvana shares are held by institutional investors. Comparatively, 78.6% of Copart shares are held by institutional investors. 16.4% of Copart shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Carvana and Copart’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Carvana $365.14 million 7.47 -$93.11 million N/A N/A
Copart $1.45 billion 6.93 $394.22 million $1.28 33.90

Copart has higher revenue and earnings than Carvana.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Carvana and Copart, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carvana 1 3 10 0 2.64
Copart 0 4 2 0 2.33

Carvana presently has a consensus target price of $20.08, suggesting a potential downside of 2.27%. Copart has a consensus target price of $41.75, suggesting a potential downside of 3.78%. Given Carvana’s stronger consensus rating and higher probable upside, equities analysts clearly believe Carvana is more favorable than Copart.

Profitability

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

Net Margins Return on Equity Return on Assets
Carvana -11.81% -153.67% -19.89%
Copart 20.01% 29.96% 16.30%

Summary

Copart beats Carvana on 7 of the 11 factors compared between the two stocks.

Carvana Company Profile

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.

Copart Company Profile

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.

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