Comparing America’s Car-Mart (CRMT) and Its Competitors

America’s Car-Mart (NASDAQ: CRMT) is one of 20 public companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its peers? We will compare America’s Car-Mart to similar businesses based on the strength of its institutional ownership, earnings, analyst recommendations, valuation, risk, profitability and dividends.

Volatility & Risk

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America’s Car-Mart has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, America’s Car-Mart’s peers have a beta of 9.98, suggesting that their average share price is 898% more volatile than the S&P 500.



Analyst Ratings

This is a summary of recent recommendations for America’s Car-Mart and its peers, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
America’s Car-Mart 0 2 0 0 2.00
America’s Car-Mart Competitors 115 620 667 29 2.43

America’s Car-Mart presently has a consensus target price of $47.50, suggesting a potential downside of 7.77%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 17.26%. Given America’s Car-Mart’s peers stronger consensus rating and higher probable upside, analysts clearly believe America’s Car-Mart has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares America’s Car-Mart and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
America’s Car-Mart $587.75 million $20.20 million 20.20
America’s Car-Mart Competitors $8.01 billion $220.42 million 12.11

America’s Car-Mart’s peers have higher revenue and earnings than America’s Car-Mart. America’s Car-Mart is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

82.2% of America’s Car-Mart shares are held by institutional investors. Comparatively, 62.1% of shares of all “Automotive dealers & gasoline service stations” companies are held by institutional investors. 11.7% of America’s Car-Mart shares are held by company insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares America’s Car-Mart and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
America’s Car-Mart 5.30% 9.91% 5.24%
America’s Car-Mart Competitors 3.22% 33.52% 3.60%

Summary

America’s Car-Mart peers beat America’s Car-Mart on 9 of the 13 factors compared.

America’s Car-Mart Company Profile

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2017, it operated 140 dealerships in 11 states in the South-Central United States. America's Car-Mart, Inc. was founded in 1981 and is headquartered in Bentonville, Arkansas.

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