Analyzing Copart (NASDAQ:CPRT) and Carvana (CVNA)

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

Analyst Recommendations

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

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

Copart currently has a consensus target price of $41.75, suggesting a potential downside of 4.07%. Carvana has a consensus target price of $20.08, suggesting a potential downside of 1.70%. Given Carvana’s stronger consensus rating and higher probable upside, analysts clearly believe Carvana is more favorable than Copart.

Valuation & Earnings

This table compares Copart and Carvana’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Copart $1.45 billion 6.95 $394.22 million $1.28 34.00
Carvana $365.14 million 7.43 -$93.11 million N/A N/A

Copart has higher revenue and earnings than Carvana.

Institutional and Insider Ownership

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

Profitability

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

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

Summary

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

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.

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.

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