Carvana (CVNA) versus The Competition Head to Head Review

Carvana (NYSE: CVNA) is one of 20 publicly-traded companies in the “Automotive dealers & gasoline service stations” industry, but how does it weigh in compared to its peers? We will compare Carvana to similar businesses based on the strength of its risk, valuation, institutional ownership, profitability, earnings, dividends and analyst recommendations.

Insider & Institutional Ownership

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14.9% of Carvana shares are owned by institutional investors. Comparatively, 62.0% of shares of all “Automotive dealers & gasoline service stations” companies are owned by institutional investors. 21.4% of Carvana shares are owned by insiders. Comparatively, 16.5% of shares of all “Automotive dealers & gasoline service stations” companies are owned by 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 its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Carvana $858.87 million -$18.31 million -24.18
Carvana Competitors $8.01 billion $220.42 million 12.21

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

Profitability

This table compares Carvana and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Carvana -11.17% -74.69% -19.48%
Carvana Competitors 3.22% 33.67% 3.65%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Carvana and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Carvana 1 5 8 0 2.50
Carvana Competitors 115 625 670 29 2.43

Carvana currently has a consensus target price of $22.50, suggesting a potential downside of 23.10%. As a group, “Automotive dealers & gasoline service stations” companies have a potential upside of 17.60%. Given Carvana’s peers higher possible upside, analysts plainly believe Carvana has less favorable growth aspects than its peers.

Summary

Carvana peers beat Carvana on 9 of the 12 factors compared.

About Carvana

Carvana Co., together with its subsidiaries, operates an e-commerce platform for buying used cars in the United States. The company purchases, reconditions, sells, and delivers vehicles. Its platform allows customers to research and identify a vehicle; inspect it using company's proprietary 360-degree vehicle imaging technology; obtain financing and warranty coverage; purchase the vehicle; and schedule delivery or pick-up. The company was founded in 2012 and is headquartered in Tempe, Arizona.

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