Carvana (NYSE:CVNA – Get Free Report) and Inchcape (OTCMKTS:INCPY – Get Free Report) are both retail/wholesale companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, risk, earnings, institutional ownership, analyst recommendations, profitability and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Carvana and Inchcape, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Carvana | 5 | 15 | 1 | 0 | 1.81 |
| Inchcape | 0 | 0 | 1 | 0 | 3.00 |
Carvana currently has a consensus target price of $39.16, suggesting a potential downside of 3.07%. Given Carvana’s higher probable upside, equities analysts plainly believe Carvana is more favorable than Inchcape.
Earnings and Valuation
This table compares Carvana and Inchcape’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Carvana | $13.60 billion | 0.56 | -$1.59 billion | ($12.34) | -3.27 |
| Inchcape | N/A | N/A | N/A | N/A | N/A |
Inchcape has lower revenue, but higher earnings than Carvana.
Institutional and Insider Ownership
51.1% of Carvana shares are owned by institutional investors. 17.1% of Carvana shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Carvana and Inchcape’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Carvana | -11.08% | -1,491.81% | -6.94% |
| Inchcape | N/A | N/A | N/A |
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 was founded in 2012 and is based in Tempe, Arizona.
About Inchcape
Inchcape plc operates as an automotive distributor and retailer. The company engages in the distribution, sales, and marketing of new and used cars, and parts. It also provides aftersales service and body shop repairs; and finance and insurance products and services. The company operates in the Asia Pacific, the United Kingdom, rest of Europe, the Americas, and Africa. Inchcape plc was founded in 1847 and is headquartered in London, the United Kingdom.
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ABMN Staff
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